At the start of the week, the price of XRP has fallen noticeably by more than 10% as a result of a large correction on the cryptocurrency market. In just one hour, the token lost all of its recent gains and fell down to $0.465 per token. U.Today first reported on this news.
Such a sudden shift in the market spurred lively debates in the neighbourhood, with even David Schwartz, one of the XRPL’s architects and current CTO at Ripple, participating.
A fan of XRP tweeted that they had been de-risking for a month and felt better with less exposure after selling 55% of their XRP bag at $0.49. This prompted Schwartz’s response. De-risking was endorsed by Schwartz, who argued that it makes sense and is wise. Moreover, he pointed out that there will never be the ideal moment to act because both the peak and low of the market are constantly subject to change.
Current market conditions serve as a reminder of the cryptocurrency market’s cyclical nature and the value of risk management when making investments in digital assets. Despite the temptation to hang onto investments during a downturn, de-risking is a sensible and logical way to reduce losses.
What the future holds for XRP and the rest of the cryptocurrency sector is currently unknown. Yet, a positive scenario is preferred as long as the token’s price is above the specified support level.
