The cryptocurrency market is experiencing a severe downturn, with Ripple’s XRP particularly affected. Following a significant plummet in prices, over $700 million in leveraged positions were liquidated, prompting questions about the cause behind XRP’s decline.

Why is XRP’s Price Declining?

Currently, the exact reasons remain uncertain, with speculations surrounding a wider market crash. Recent reports indicated that nearly $20 billion in leveraged positions were wiped out across various platforms as Bitcoin’s price fell sharply from over $122,000 to about $105,000. This situation has undeniably rippled through the altcoin sector, where XRP, along with others, has suffered steep declines.

Despite the sharp fall to approximately $1.2 on Binance, XRP has managed to reclaim some ground, now trading at about $2.4. This showcases the volatility typical within the altcoin market, especially during significant price movements.

XRP Price Chart Source: TradingView

Additionally, the current market dynamics illustrate how leveraged trading can amplify downturns for altcoins, highlighting the inherent risks in trading these assets.