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XRP, the fourth largest cryptocurrency by market value, has plunged by nearly 12% in the past day, mirroring the decline seen in other major altcoins.
At the time of writing, XRP was down 10.24% in the last 24 hours to $2.19, underperforming the top 10 cryptocurrencies by market capitalization. Aside from TRON, which is down over 10%, XRP had the largest losses among the top 10 daily.
Most likely, XRP's price plunge was contributed to by profit-taking; a recent analysis from on-chain data provider Kaiko highlights that the sell-off was predominantly led by Korean platforms.
The XRPCVD (XRP Cumulative Volume Delta) by quote asset indicates that the XRP sell-off began to accelerate around 7:45 p.m. UTC on Dec. 9, earlier than in other markets. This early movement suggests that traders on Korean exchanges were the first to react, possibly due to local market conditions or sentiment.
Tomiwabold OlajideThis can be explained as South Korean crypto exchanges account for roughly 11% of the total BTC, ETH, XRP and DOGE trade volume.
What happened?
A steady bleed in XRP price action since Sunday's highs of $2.64 had escalated on Monday, with XRP declining to lows of $1.95.
In a chart accompanying its tweet, Kaiko analyzed the XRP price sell-off via the XRP CVD; CVD in this context implies cumulative volume delta, which measures net buying and selling activity. A negative CVD means net selling.
Per the chart, it became observable that the CVD of the XRP/KRW pair declined faster into the negative than other XRP-based pairs, such as XRP/EUR, XRP/FDUSD, XRP/USD and XRP/USDT.
The XRPCVD for the XRPKRW accelerated sharply into the negative at 7:45 p.m. UTC on Dec. 9, and by Dec. 10, at 10:30 a.m. UTC per the chart, it had stabilized at a negative $150 million.
The early sell-off on Korean platforms had a ripple effect across the global market. As traders on these platforms began to sell their XRP holdings, the price fell and other exchanges followed suit.
XRP has somewhat recovered to about $2.15, where it is presently trading after reaching lows of $2.04 in today's session.
Alex Dovbnya
Dan Burgin
Vladislav Sopov