Here's Why Ripple (XRP) Loses 5% While the Global Crypto Market Remains Positive

While the global cryptocurrency market is presently going through another round of rallies, the value of XRP has been declining. The asset has lost more than 5% in the last 24 hours, falling below a March peak.
The worth of popular cryptocurrencies like Bitcoin and bigger altcoins like Ethereum (ETH), Cardano (ADA), and Solana (SOL) increased over the past 24 hours, keeping the global crypto market in the black.
XRP decreases 5%, Why?
Prior to today's price action showing a bearish pattern, XRP had been rising over the previous week. The value increased by almost 20%. From its March 25 low of $0.44 to its current price, XRP

It's interesting to note that the time of XRP's bullish movements coincided with the global crypto market's retracement following a successful rise at the start of March. Large crypto assets like ETH and BTC only moved 3.2% and 4.4%, respectively, between March 25 and April 1, during which time XRP experienced an 18% increase.
 

The 3-hour price trend for XRP is shown below. | Source: TradingView.com
After having spiked above that price level in the previous three days, the price of XRP has now dropped by 6% over the last 24 hours and is currently trading at $0.51. Nearly $2 billion have been subtracted from its market capitalization over the last 24 hours. Its market cap worth is $26.3 billion at this writing, down from $27.5 billion at the start of the day.
So far, there are only two explanations for the most recent negative movement of XRP. One reason is that big investors might be cashing out given that the asset not only broke through several resistance levels in the previous week, but also sparked a number of take profit orders.
 

Additionally, San Francisco-based crypto powerhouse Ripple Labs made another release of its monthly trust system earlier today. An XRP-based escrow algorithm discovered four XRP transactions on March 1 that contained 2 x 400,000,000 and 2 x 100,000,000 XRP.

Though out of every monthly release only a small amount goes into circulation as the company conducts a re-escrow whereby it locks the tokens for release in the coming first month. However, this can still be attributed to XRP’s latest price action.

This is because even the small amount released into circulation is enough to impact the asset’s market if there is low demand compared to the increased supply. The XRP escrow process is a mechanism introduced to provide additional predictability to the XRP supply.

According to the company’s website, “Ripple has locked 55 billion XRP (55% of the total possible supply) into a series of escrows.” These escrows are built on top of the XRP  ledger whereby ledger mechanics, enforced by consensus, control the monthly release of the XRP.

“The escrow consists of independent on-ledger escrows that release a total of one billion XRP each month over the next 55 months. This provides an upper limit on the amount of new XRP that can be brought into circulation,” said Ripple.

Global Crypto Market Stay In Green

Meanwhile, the global crypto market is currently enjoying a bullish move amid XRP’s decline. Over the past 24 hours, Bitcoin and Ethereum have surged nearly 2%, respectively. In contrast, larger altcoins by market capitalization have also stayed in the green.

In the past 24 hours, Dogecoin (DOGE), Polygon (MATIC), and Solana (SOL) have moved sideways on the price chart surging by 2.5%, 1.9%, and 3.5%, respectively.