Ripple's XRP token extended its losses today, dropping to less than $1.75.
The digital currency fell to as little as $1.72, according to CoinMarketCap.
This recent low represented a 55% decline from the all-time high of $3.84 reached last week, additional CoinMarketCap figures show.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
The digital asset suffered this pullback after experiencing an astronomical gain where it climbed more than 30,000% in 2017.
XRP prices experienced further gains early this year, approaching $4 as the digital currency benefited from significant hype.
XRP Became "Overvalued," Says Analyst
The cryptocurrency's recent pullback took place because the digital asset was "overvalued," said Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital.
"Its price initially spiked because sentiment was high; there were rumors of additional deals with big banks and its token, XRP, being listed on Coinbase," he said.
"When those didn't materialize, sentiment turned, and investors started dumping after it hit $3," stated DiPasquale.
Chris Keshian, co-founder of the Apex Token Fund, a tokenized crypto fund-of-funds, offered similar sentiment.
"XRP was trading at high prices due to the recent news announcements around Ripple's banking partnerships," but once the resulting hype began to fade, the cryptocurrency dropped sharply.
Cyclical Price Movements
Digital currency trader Marius Rupsys described XRP's pullback differently, emphasizing that "cryptocurrencies move in cycles," and stating that "Ripple tends to increase in price to very high levels and then just go down for extended period of time."
Rupsys pointed to a broader correction, stating that "Not only Ripple but many other cryptocurrencies are going down for the past days."
Iqbal Gandham, U.K. managing director at eToro, gave a similar point of view, stating that Ripple's recent price decline is "all part of the general correction," stating that XRP is suffering a little more than other currencies because it climbed so sharply.
"Projects that got high valuations, like Ripple (10x in a month) can't sustain this growth as it is not driven by fundamentals, but rather speculation," concluded Rupsys.