The ripple price fell below dollar parity this morning, punctuating the third-largest cryptocurrency’s 28 percent skid.
Ripple entered 2018 on a hot streak of parabolic proportions. During a one-month period, the global average ripple price rocketed from just $0.25 to an all-time high of $3.84, creating XRP millionaires almost overnight and briefly making Ripple co-founder Chris Larsen the nominal eighth-richest person in the world.
The downside to these breakneck rallies, however, is that their declines are often equally as precipitous. This has proven to be the case this week, as ripple has been among the coins hardest hit by a severe correction that has reverberated throughout the cryptoasset markets.
On Wednesday, the ripple price dropped to $0.99 on Bittrex, marking its first dip below dollar parity since late December, when it crossed the $1 threshold for the first time. This represents a single-day decline of 28 percent and a 74 percent pullback from its all-time high. Ripple now has a circulating market cap of just $38.3 billion.
The vast majority of XRP trading volume is concentrated on South Korean exchanges, which continue to price it as high as $1.18 as of the time of writing. This is not unusual, though, as South Korea is known for its so-called “kimchi premium” on cryptocurrencies.
Although ripple has posted one of the worst single-day performances of any top-tier cryptocurrency, its correction has been far from an isolated incident. Prices have been plunging across the board, forcing the bitcoin price below $10,000 and the ethereum price below $900.
Altogether, the cryptocurrency market cap has shed approximately $402 billion from the all-time high it set on Jan. 7 and currently sits at just $433 billion — a peak-to-valley decline of 48 percent.
This correction has taken many traders by surprise, and investors — some of whom have never endured a true market correction — must grapple with whether to cut their losses or “hodl” through what could be either a temporary blip during a sustained rally or the first roar of a bear market awaking from prolonged hibernation.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:10 PM UTC