XRP, the native currency of the XRP Ledger (XRPL) developed by Ripple Labs, and Dogecoin (DOGE), the original meme coin, are among notable fast-falling assets in the top-10 looking at developments in the daily chart over the past week.
When writing on August 17, XRP is down 10% while DOGE is dumping even harder, losing 13% in the last seven trading days.
The Altcoin Sell-off
At this rate, XRP and DOGE match MATIC, down 13%, and SHIB, the Shiba Inu’s native token, fell 15% in the same time frame. The sell-off of these altcoins is noticeable and comes amid encouraging fundamental developments.
What’s also evident is that traders are dumping DOGE and SHIB, two of the most valuable meme coins, and decentralized finance (DeFi) tokens at a relatively higher pace than other coins. Apart from MATIC, the token behind Polygon, the Ethereum sidechain, and XRP, tapped by Ripple for its On-Demand Liquidity (ODL) solution, LidoDAO (LDO) and Uniswap (UNI) are deep in red when writing.
UNI, for example, is down 15% despite being the dominant decentralized exchange (DEX). Meanwhile, LDO is down 10%, albeit the most significant DeFi protocol by total value locked (TVL) according to DeFiLlama data. As of August 17, LidoDAO and Uniswap had TVLs of $14.3 billion and $3.5 billion, respectively.
Altcoins appear to be under immense selling pressure looking at price action in the daily chart and over the past week just when Bitcoin is crashing, contracting from around $28,500 region. The world’s largest coin is now below the “bull flag” in the daily chart hinting that bears are in control and there might be even more losses in the coming few trading sessions.
Bitcoin Falls, XRP And DOGE Follows Despite Solid News
Bitcoin remains bullish from a top-down preview since price action is within the June to July 2023 trade range. Given the correlation between Bitcoin and altcoins, every dip in BTC could worsen altcoins’ losses going forward.
The drop in XRP is roughly after a United States court ruled that it is not a security, a win against the Securities and Exchange Commission (SEC) that briefly lifted BTC to $31,800. XRP soared above $0.80 but is now down, sliding 10% in the last week alone, and appears to be edging back toward the $0.45 zone.
On the other hand, the Mission DOGE-1 for Dogecoin has been slated for later this year. The mission, which was initially delayed, is fully paid for in DOGE.
Feature image from Canva, chart from TradingView