XRP declines to $2.26 as Bitcoin and Ethereum rise

XRP (CRYPTO:XRP) has experienced a significant decline of 10%, dropping to $2.26, while major cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) continue to rise.

This downturn comes after a strong rally for XRP over the past month, leading to a reduction in its market capitalisation, which has now fallen below that of Tether (CRYPTO:USDT).

Pav Hundal, Chief Market Analyst at Swyftx, explained that this shift in investor interest is part of a broader cycle. 

“Investors are moving from altcoins to major cryptocurrencies like Bitcoin and Ethereum. The expectation of Bitcoin’s rally continuing supports this trend,” he stated.

Hundal noted that XRP's decline is consistent with overall market behavior.

Crypto analyst Dark Defender characterised the recent price drop as expected. 

“XRP’s price may continue to show sideways movements for a while. However, we expect the price to reach levels of $2.92 and $3.99 in the long run,” he remarked, suggesting that investors should remain vigilant.

On a more optimistic note, recent changes at the SEC have generated hope within the XRP community. 

The nomination of Paul Atkins as SEC Chair by former U.S. President Donald Trump has been positively received by XRP supporters, who view him as “crypto-friendly” and a “logical candidate.” 

Analyst James Murphy highlighted the potential benefits this could have on XRP’s price.

Additionally, Ki Young Ju, CEO of CryptoQuant, noted significant shifts in the altcoin landscape. 

“Bitcoin has created its own league. The BTC-altcoin correlation is a thing of the past,” he explained, emphasising the need for altcoins to innovate.

The introduction of the RLUSD (CRPTO:RLUSD) stablecoin on XRPL and Ethereum, along with four U.S. Spot XRP ETF applications, also adds to the evolving market dynamics.

Investors are advised to monitor these developments closely as they navigate their strategies in this changing environment.