The price of the XRP (CRYPTO: $XRP) %Cryptocurrency is slumping following a big rally in recent months.
The token, which is used to settle and facilitate transactions on Ripple Labs’ digital payments platform, has declined 2.5% to $2.30 U.S. in the last 24 hours.
XRP has been volatile in recent trading sessions after outperforming nearly every other digital asset. The cryptocurrency has risen 403% in the last six months, including a 270% gain in the past month alone.
The big rally was sparked by the re-election of U.S. President Donald Trump, who is expected to ease legal pressure on Ripple Labs.
In 2020, the U.S. Securities and Exchange Commission (SEC) charged Ripple Labs with selling an unregistered security.
In August of this year, a federal judge ordered Ripple to pay $125 million U.S. for violating investor-protection laws.
The incoming Trump administration is expected to be kinder to cryptocurrencies such as XRP and the companies behind them.
However, XRP is now seeing its price slump after its big post-election rally. In the last five trading sessions, XRP’s price has fallen 6%.
Analysts say traders are likely taking profits after such a strong bull run, and the short-term catalysts for XRP now seem exhausted.
Still, many analysts continue to forecast a bull run for cryptocurrencies in 2025 as the Trump administration enacts friendly policies and regulations pertaining to digital assets.