XRP price declines by over $1 billion in one week

XRP, one of the leading cryptocurrencies in the market, is currently facing a significant decline, mirroring the broader cryptocurrency sector’s performance. In just a few days, XRP has experienced a substantial reduction in its market capitalization, losing over $1 billion.

This development has raised concerns among investors, despite Ripple’s efforts to boost liquidity through its escrow system.

As of September 4, XRP’s market capitalization was a strong $26.58 billion. However, according to the latest data from CoinMarketCap as of September 11, it has dropped to $24.98 billion.

This decrease of $1.6 billion in market capitalization in just one week highlights the continued volatility in the cryptocurrency markets.

During this period, the price of XRP has also suffered, currently hovering around $0.4716. This signifies a 4.79% decline in the past 24 hours, a 5.62% drop over the previous seven days, and a substantial 24.53% loss in the monthly chart.

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For traders and investors, it is crucial to be mindful of key price levels. At the time of writing, the most robust support level for XRP is approximately $0.485051, while the most formidable resistance level stands at $0.514243. These levels can offer valuable insights into potential price movements.

The recent decline in XRP’s value coincided with Ripple’s decision to release one billion XRP from its escrow system on September 1. Ripple has been using this strategy since 2017 to introduce new tokens into circulation and enhance XRP’s liquidity.

However, in an effort to address concerns and stabilize the market, Ripple relocked 80% of the previously unlocked tokens (800 million XRP) into two separate escrows on September 5, retaining 200 million XRP for potential future use.