From decrypt by Andrew Hayward

XRP. Image: Shutterstock

XRP surged last week to a seven-year high price of $2.82 on renewed optimism of regulatory clarity ahead, but volatility in the crypto markets has rocked the coin, sending it below the $2 mark on Tuesday as Bitcoin continued to cool off.

The Ripple-linked XRP touched a price of $1.90 on Tuesday, according to crypto exchange Coinbase, marking a nearly 33% drop from last week’s peak. It’s now down 15% over the last 24 hours, per data from CoinGecko, at a current price of $2.06.

Even amid the latest dip, XRP is up 237% on the month, showcasing just how dramatic its recent gains have been.

Like many crypto assets, XRP jumped in price in November and early December, fueled by the election win of pro-crypto candidate Donald Trump. But XRP’s climb turned into a rocketship ride to price territory not seen since January 2018, after SEC Chair Gary Gensler said he would resign when Trump takes office in January.

XRP faced intense regulatory scrutiny under Gensler’s tenure, with the SEC targeting Ripple Labs, whose co-founders created the token. Ripple’s payments service is built around XRP. Trump’s win has fueled optimism that XRP will see regulatory clarity ahead, which can fuel the launch of products like XRP exchange-traded funds (ETFs).

  But the recent upswing has been followed by a sharp correction, with XRP currently the biggest loser in the top 10 cryptocurrencies over the past day. Bitcoin, by contrast, is down just 1.5% on the day at a current price of about $95,688, rising from a price of $94,386 hit shortly after 1pm ET.