thecryptobasic.com
Austin Hilton, CEO of the Redhill Group, has attributed the recent XRP 7% dip to capital flowing out of crypto and into stock, stressing his confidence of a bullish comeback.
Recall that XRP recently collapsed with the broader crypto market following a previous sustained uptrend. While the rest of the market dropped, XRP’s collapse was more substantial due to the fake report of a BlackRock XRP Trust.
XRP had spiked to $0.75 on the back of the reports, but immediately collapsed to a low of $0.5967 when sources confirmed the filing was fake. This represented a 20.44% decline within hours. XRP eventually recovered from the $0.5967 low, but a resurgence of selling pressure kept it in the red.
As the selling pressure mounted, XRP observed a 6% drop on Nov. 14, marking its largest intraday decline since August. The bearish atmosphere compounded investor angst, leading to increased selling pressure and a drastic decline in trade volume, as market participants staged a departure.
The Bulls Will Return
Amid the escalating chaos, Austin Hilton came up to discuss XRP’s market prospects on X. He emphasized the core reason behind XRP’s recent decline besides the reports of the fake BlackRock XRP Trust filing. Hilton reassured investors that the bulls are merely taking a temporary hiatus.
Notably, XRP has already begun registering some mild gains, but continues to trade in bearish territories. Hilton highlighted the visible downturn in XRP’s value, emphasizing the swift bounce-back that has already commenced.
His optimistic outlook rested on the belief that the bulls will inevitably return to drive XRP’s resurgence. Despite the recent setback, Hilton underscored the enduring strength of XRP’s fundamentals, positioning it as a top-tier asset, closely trailing Bitcoin and Ethereum.
Core Reason Behind XRP Drop
Hilton acknowledged the broader market scenario, attributing XRP’s decline to a transient market correction. He connected the dots to a noteworthy event in the traditional stock market, where the Consumer Price Index (CPI) numbers triggered a positive reaction, prompting a flow of capital from crypto to stocks.
Recall that the latest CPI report revealed that U.S. inflation cooled to 3.2%, representing the lowest figure this year. As a result, investors trooped to the traditional stock market, with capital flowing out of crypto. Hilton emphasized that the same capital often transitions between different markets.
He used the recent market dynamics to illustrate this point, explaining how money swiftly exited the broader crypto space, affecting most crypto assets, and not just XRP. He pointed out that only Solana (SOL) and Kaspa (KAS) were recording substantial gains.
The CEO pointed out that this phenomenon of transitioning capital is not uncommon and, in fact, indicates the liquidity and flexibility of capital in the overall financial landscape. He further expressed confidence in XRP’s resilience, noting that it is merely undergoing a momentary lull in activity.
Hilton framed it as a small market correction rather than a cause for long-term concern. Meanwhile, XRP is already seeing a price rebound, up 3.50% to $0.6516. However, trade volume remains down, with a 31% drop to $1,485,292,935.