Earlier this Tuesday, the Ripple-affiliated XRP token plunged below the $2 mark for the time since Dec. 1.
The controversial cryptocurrency reached an intraday low of $1.94, according to CoinGecko data.
Just over the past 24 hours, XRP has plunged by roughly 15%. This makes it one of the worst-performing tokens in the top 100 alongside Stellar (XLM), Polkadot (DOT), EOS, and several meme coins such as Floki (FLOKI), Bonk (BONK), and dogwifhat (WIF).
Despite the significant price correction, pseudonymous trader DonAlt, who famously predicted the dizzying rally that took place over the past month, believes that XRP might continue dominating the discourse if the broader crypto bull market continues.
He has also opined that the entire XRP ecosystem is severely underpriced compared to other tokens.
"Yeah, if the bull market sustains long enough for XRP to launch something actually useful I think it'd be one of the best-performing things this cycle," the trader said.
Earlier today, Weiss Crypto, a provider of independent ratings for stocks and cryptocurrencies, noted that XRP's massive rally was a warning sign for the cryptocurrency market. This coincided with surging leverage - from skyrocketing stablecoin borrowing rates to extreme funding rates on crypto swaps. Classic red flags," the firm said.
According to data provided by CryptoQuant, more than 2.6 billion XRP tokens were recently moved to exchanges. This is the highest number of XRP tokens deposited since April.
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Dan Burgin
Vladislav Sopov