Within the past 24 hours, since October 18, the Ripple price has fallen by around 9 percent, from $0.23 to $0.21.
Since October 16, in a three-day period, the price of XRP dropped from $0.289 to $0.21, by over 27 percent.
Factors For Price Decline, Indicators of Recovery
The price of XRP has likely fallen substantially in the past three days due to the major correction the cryptocurrency market has experienced throughout this week. The correction was caused by the rapid growth rate of the cryptocurrency market and leading cryptocurrencies such as Bitcoin, Ethereum and Ripple, that have demonstrated substantial increase in value in the past month.
Particularly, since September, the market cap of the Ripple blockchain network has increased from $6.5 billion to over $10 billion, with minor corrections. Throughout its mid-term surge in market cap and value, Ripple has barely recorded corrections of over 5 percent, which likely led to the recent 27 percent short-term decrease in value.
But, similar to Bitcoin and Ethereum, the major correction of the cryptocurrency market would likely provide a better platform for Ripple and other cryptocurrencies to initiate stronger rallies and new highs. Ripple, Bitcoin, and Ethereum have demonstrated important developments and achieved significant milestones in the past few weeks.
Ripple in specific has secured partnerships with the Gates Foundation, more than 10 major financial institutions including, and won the lawsuit that was filed by the R3 consortium.
On October 10, Ripple announced:
“More than 100 financial institutions have joined Ripple’s enterprise blockchain network, RippleNet, to definitively modernize global payments leveraging the full power of blockchain. The newest members of RippleNet include AirWallex, Bexs Banco, Credit Agricole, Cuallix, Currencies Direct, dLocal, IFX, Krungsri, RAKBANK and TransferGo, amongst others, and they’re now on the path to join existing members like SEB and Siam Commercial Bank who have deployed Ripple solutions commercially.”
More importantly, the dismissal of the R3CEV case could turn out to be a vital victory for the Ripple team, as it meant that R3CEV could no longer purchase XRPs at a rate substantially lower than the market rates and secure a profit of over $1.2 billion.
Earlier this year, Reuters, a member corporation of the R3 consortium, disclosed that R3CEV has filed a lawsuit to re-obtain its purchasing power of 5 billion XRPs at a rate of $0.0085. In 2016, Ripple and R3CEV established an agreement to allow R3CEV to purchase 5 billion XRPs at a rate of $0.0085, given that R3CEV fulfills its commitment and provides services to Ripple as listed on the agreement.
Since then, the price of XRPs has increased by over 3,000 percent, to $0.22. Hence, if R3CEV’s lawsuit had not been dismissed by the Delaware judge, R3CEV would have been able to profit $1.2 billion from its contract. But, this week, Brad Garlinghouse, the CEO of Ripple, revealed:
— Brad Garlinghouse (@bgarlinghouse) October 13, 2017
Conclusively, considering the growth of Ripple and the price trend of XRP in the past month, despite its recent correction, Ripple is at an optimal position to initiate a new rally.