XRP trades at $1.20, down 8.05% in 24 hours and 17.55% over the past month. Despite the sharp decline, prominent crypto analyst Crypto Michael (@MichaelXBT) told his followers not to panic. “Fake dump. Don’t fall for it,” he wrote, quickly drawing the XRP army’s attention.
Why is XRP Falling Today?
The selloff has a clear trigger. Democrats won control of both the House and Senate in the midterm elections. Many in the crypto community were worried about this outcome, and the decline across the market reflects that displeasure.
The CLARITY Act, a bill designed to establish a regulatory framework for digital assets, had been working through Congress. Democrats blocked its progress in September. With the party now controlling both chambers, the path to crypto-friendly legislation has narrowed significantly. Traders sold on the news.
Bad News for XRP Holders
XRP is especially sensitive to this outcome. Ripple has spent years fighting for regulatory clarity, and the token’s price has historically responded to shifts in the legal and legislative environment. A Democratic-controlled Congress makes a near-term resolution far less likely.
The broader crypto market fell alongside XRP. Bitcoin dropped below $76,000, erasing its post-election rally. Ethereum fell nearly 7%.
How the Community Reacted
Responses to Crypto Michael’s post ranged from skeptical to outright dismissive. One user pushed back directly, noting that the dump was real regardless of what anyone called it, and questioning what exactly made it fake.
Another said that if Crypto Michael had correctly predicted the drop the day before, he would have called it a “BOOM” instead. He accused the analyst of playing with words after being bullish the previous day.
One reply raised the trading volume as evidence against the “fake dump” narrative. XRP’s 24-hour trading volume is $2.92 billion, up 5.47%. He argued that a move with that much volume behind it cannot simply be dismissed.
Where XRP Stands
XRP sits at $1.20. The SEC and CFTC have provided some rules, and XRP has additional bullish catalysts like the recent approval of Ripple Natural Trust Bank. However, these may not be sufficient to counter the bearish sentiment caused by the elevator outcome.
The result removed one of the token’s key bullish narratives, and the market repriced accordingly. Whether Crypto Michael’s “fake dump” call proves correct depends largely on how the new Congress approaches digital asset regulation in the months ahead. For now, sellers are in control.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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