Ripple XRP extends the downward trend in Tuesday trade, dropping more than 29% following renewed concerns over the potential ban from South Korea and China. Ripple is the most widely traded cryptocurrency in South Korea. Thus, its price plunged more than the other largest digital currencies on South Korean concerns. In Tuesday trade, bitcoin and ethereum dipped 15% and 14%, respectively.
Ripple is amongst the biggest laggards in the last two weeks. After hitting an all-time high of $3.84 on Jan. 4, ripple lost almost 66% of its value in less than two weeks. The digital currency is currently trading close to $1.30, down 29% from the previous day. Its market capitalization declined to $50 billion at present from $123 billion on Jan 4, thanks to a sharp drop in its price.
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There are several reasons behind the drop in ripple’s price. However, the news of the potential ban from South Korea has substantially impacted its price since last Wednesday.
Although ripple pared some losses in Thursday’s trade and hit the level of $2.12 after the announcement of its partnership with MoneyGram, traders profit taking strategy reversed its price back to the range of $1.80.
The fresh comments from South Korean minister plunged its price by 29% to the lowest level in the last three weeks.
Shutting down digital currency exchanges is “a live option but government ministries need to very seriously review it”, South Korean Minister said on Tuesday.
Moreover, China has also been taking a lead in banning cryptocurrency trading in domestic markets. In fact, they are also blocking access to the offshore cryptocurrency trading platforms. Last week, they announced higher taxes and regulatory requirements on coin mining.
Analysts are expecting ripple to trade in the range of $1.00 to $1.80 in the following days. Ripple and other cryptocurrencies are likely to face further volatility, as several other countries are preparing to control the digital currencies. The French and Indonesian finance ministers have already indicated hard regulatory rules for cryptocurrencies.
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