Unfortunately for cryptocurrency traders no rebound was forthcoming after the sell-off in the early hours of Monday.
In fact, much to their dismay, cryptocurrencies have continued to tumble lower overnight and few have fallen as hard as the Ripple (XRP) price.
At the time of writing the XRP price is fetching US$1.21 per coin, down 12% since this time yesterday according to Coin Market Cap. This has reduced the third-largest cryptocurrency's market capitalisation to US$47 billion.
By comparison, the bitcoin (BTC) price is down almost 8.5% during the period to US$10,514 per coin, leaving it with a market capitalisation of just under US$177 billion.
Why is XRP sinking again?
While no single reason is known to be the actual cause of this latest sell-off, one theory that I believe has merit is nervousness.
According to Forbes, this decline may have been brought about by nervous investors due to the recent crypto crash that occurred following reports of a major crackdown on the industry in South Korea and China.
Crypto expert Joe DiPasquale told Forbes that he believed that: "it's likely that investors who were shaken by the volatility – but smart enough not to sell at the bottom – are simply taking their profits while they can, or pulling out while they're breaking even."
Should you buy this dip?
As tempting as buying the dip can be, I would suggest that investors stay well clear of XRP and its fellow altcoins for the time being.
With investor sentiment in the crypto world turning increasingly negative, I suspect that prices could continue to come under pressure in the coming weeks. And while there may be short-term rebounds that bring a little hope to traders, I think the days of crypto prices climbing ever higher are over. At least for now.
