XRP price witnessed a significant recovery following South Korea’s swift reversal of martial law late on Tuesday, December 3, 2024. Ripple’s XRP token, which had experienced panic selling amid political turmoil, rebounded with a 1% gain in the past hour.
South Korea’s Panic Mode Ends
President Yoon Suk Yeol had unexpectedly declared martial law, pledging to suppress “anti-state” elements and accusing opposition lawmakers of sympathizing with North Korea. The move sparked significant controversy, evoking comparisons to South Korea’s authoritarian past.
The military had further announced a suspension of parliamentary and political activities, which it claimed could lead to “social confusion,” as reported by Yonhap News Agency. The declaration’s impact was immediately felt in financial markets, with XRP traders reacting sharply.
Trading volumes for XRP on Upbit, South Korea’s leading crypto exchange, surged to $7.55 billion, surpassing activity on the KOSPI stock exchange. This reflected heightened investor anxiety amidst the nation’s political crisis as XRP price struggled amid selloffs.
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However, in a dramatic turn of events, South Korea’s Parliament annulled the martial law declaration within hours. National Assembly Speaker Woo Won Shik reassured citizens, stating that lawmakers would “protect democracy with the people.”
He demanded the withdrawal of military and police forces from parliamentary premises. After the parliamentary outrage, South Korea’s President Yoon agreed to revoke martial law, according to a live report by CNN World.
XRP Price Dynamics
Market confidence began to recover as the political climate stabilized. XRP, which had been at the center of a market sell-off, saw renewed buying interest. Analysts attributed the rebound to the easing of tensions and the reassertion of democratic governance in South Korea.
At press time, the XRP price stood at $2.57, dropping 6.48% in the last 24 hours. However, in the one-hour frame, the crypto gained 1.11%, which signals the start of a recovery phase soon.
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Also Read: XRP Risks Fall Below $2 as Upbit Volume Hits $7B Amid South Korea Crash
