After an explosive rise last week, XRP and Cardano (ADA) will again get big hits this weekend. The prices of both Altcoins have almost dropped back to their level before the rally. Today the XRP rate has fallen by 3% and now acts around $ 2.26. Cardano (ADA) lost 2.7% and is at $ 0.78.
From euphoria to disappointment
Last week no dirt seemed to the air. Crypto investors responded euphorically to the announcement of President Donald Trump that he would set up a strategic crypto reserve, which would include Bitcoin (BTC), Ethereum (ETH), XRP, Cardano and Solana (SOL). This ensured a spectacular rise:
- Cardano rose by more than 70%
- XRP shot by 40%
Now, a week later, the picture looks completely different and the altcoins are lost almost all the winnings. What happened?
Trump’s crypto announcement less bullish than expected
In the first instance, Trump’s plan seemed great news for Altcoins, but later in the week more details were announced that tempered the euphoria. XRP and Cardano are not included in the Strategic Crypto Reserve, but only in a Stockpile.
What is the difference?
- A strategic crypto reserve means that the government is strategically maintaining the assets as a value storage or economic instrument, comparable to a gold reserve. This would give a huge boost to the long -term value.
- A Stockpile, on the other hand, is more a temporary storage of assets, without a guarantee that they are permanently retained or play an important role in economic policy.
This detail ensured that investors had to adjust their expectations, which led to massive profits and falling rates.
Crypto Summit disappointed
In addition to the disappointing details about Trump’s crypto reserve, the crypto summit in the White House, which took place last Friday, was also disappointing. Many investors hoped for concrete policy or regulations that would promote the adoption of crypto, but in reality hardly any news came out.
This lack of clear direction has further undermined trust in the market, making investors more careful.
Global economy does not cooperate
In addition, the world economy is under pressure. The stock markets continue to fall and the chance of a recession is increasing. This is bad news for risky assets such as crypto coins. When investors become uncertain about the economy, they avoid volatile investments, and that is the first to fall.
What now?
The question is whether XRP and Cardano can recover or whether more falls will follow. As long as economic uncertainty persists and the crypto industry does not get a new positive catalyst, it can be difficult for Altcoins to use a new rally.
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Source: https://newsbit.nl/xrp-en-cardano-koers-kelderen-na-euforie-wat-is-er-aan-de-hand/
