Why is the XRP price falling so sharply now?

It is a difficult start to the new week for the crypto market, but XRP stands out in a negative sense. Ripple's crypto currency is one of the biggest declines in the market and stands at a loss of more than 6 percent over the past day. Why is the coin getting such hard blows now?

Specifically, XRP is down 6.05 percent to its lowest level since August 20 at $1.08.

Last night, the price went down the hardest. In fifteen minutes, more than 2 billion dollars in market value evaporated with a decline of more than 3 percent. At night, the weather stabilized, but this morning it continued to decline at a slightly slower pace.

Ultimately, Bitcoin is the main responsible for the fall. Yesterday around 10:30 pm, Bitcoin made a slide and pulled down pretty much all the other coins. Ethereum (ETH), Solana (SOL), Dogecoin (DOGE) and Hyperliquid (HYPE) were also tapped, and you can continue to do so.

One reason for the decline is that investors started preparing for the opening of the US futures trade. At 00:00 Dutch time, futures contracts on the S&P 500 and the Nasdaq 100 could be traded again, and they immediately plunged.

The tech fair took the biggest hit with a drop of 1 percent. That happened after Nvidia CEO Jensen Huang confirmed his affair with a woman suspected of spying for China. Nvidia's share in forex trading is now down almost 5 percent.

And the many liquidations of leveraged positions have caused Bitcoin, and thus the entire crypto market, to take such a hard hit. Over the past twelve hours, nearly $1 billion in long positions have been liquidated, according to data from CoinGlass. Bitcoin reached its lowest level since August 21.

Traders who had bet on a price increase with borrowed money are forced to close their position. This mechanism ensures that losses do not exceed the collateral provided by traders. This additional selling pressure causes the price to fall further, putting pressure on new long positions. For example, a downward movement can temporarily strengthen itself.

And of course, we should not forget that the crypto market has been under pressure for a long time. Bitcoin has fallen by 15 percent since the beginning of last month and XRP is doing a lot worse with a loss of no less than 35 percent.

The main reason is the correction of the US stock market, with tech stocks plummeting like a brick due to AI concerns.

Last month, XRP lost its grip on the important support level of 1.30 dollars and after that it went very fast. Now the currency is trading only about 10 percent above the bottom of the bear market.

Bitcoin is still almost 30 percent higher, and thus the difference in power between the two coins is immediately visible. Nevertheless, even the largest crypto is now at an important tipping point, and the direction that Bitcoin chooses determines to a large extent what XRP does.

At the moment, the bull market is not yet in danger, but Bitcoin has little room to fall further. If that happens, XRP can quickly reach a new low. If Bitcoin recovers now, $1.30 is the most important level to recapture.