XRP fell sharply today, suffering greater losses than other major digital currencies and hitting its lowest in more than two years.
The digital token, which is used by the Ripple payment system, reached as little as $0.1826 at roughly 03:00 p.m. EST, CoinMarketCap figures show.
At this point, the digital asset was down more than 12% over the last 24 hours and was trading at its lowest since late 2017, additional CoinMarketCap data reveals.
However, XRP is not the only digital currency that has been suffering losses lately, as 48 of the top 50 cryptocurrencies listed on CoinMarketCap were in the red at the time of this writing.[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“The entire crypto market seems to be in a bit of a slump at the moment,” said Mati Greenspan, founder of the newsletter Quantum Economics.
“The losses in XRP are more likely a reflection of that than anything else at this time,” he stated.
However, some analysts offered a different perspective, claiming XRP’s decline accelerated as markets responded to news that neither Ripple partner MoneyGram nor its CEO Alex Holmes hold the digital token.
Earlier today, CNN aired an interview it conducted with Holmes, during which he revealed this information.
“XRP has been historically very sensitive to adoption-related news pertaining to banking and money services partners, since they represent the biggest clientele for Ripple’s services,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.
“In light of this, the statement from MoneyGram has dealt a big blow to XRP’s already weak position, especially since it was believed Ripple and MoneyGram would have a closer relationship due to the former’s investment in the latter,” he stated.
“Now, with Bitcoin’s price also experiencing downward pressure, we expect XRP to slide further due to this news,” predicted DiPasquale.
Tim Enneking, managing director of Digital Capital Management, offered a slightly more optimistic take on the matter.
“Almost certainly, the MoneyGram news accelerated the XRP drop, but the drop under these market circumstances would have happened anyway,” he stated.