[ad_1]
XRP’s price
has declined sharply due to massive liquidations and profit-taking following
November’s rally. The token faces bearish sentiment in derivatives markets, while Bitcoin and Ethereum attract more investor attention.
On Monday,
December 9, 2024, the price of XRP, the token used by Ripple, dropped by 9%,
hitting intraday lows of $2.36. While XRP/USDT on Binance remains near all-time
highs, today’s decline marks the steepest drop in over two months.
Why Is XRP Price Down Today?
Market Dynamics and Price Action
The
cryptocurrency market is witnessing a notable divergence as XRP experiences
significant selling pressure. According to CoinMarketCap, XRP is among the
leading decliners during Monday’s session, with its market capitalization
shrinking to just under $136 billion.
Consequently,
XRP has once again fallen below Tether (USDT) on the list of largest tokens.
This selling pressure is occurring amid increased trading activity, with a
24-hour volume of $12 billion.
Total long
liquidations amounting to $358 million in the last 24 hours have amplified the
price drop, creating a cascade effect in the market. For XRP alone, leveraged
long position liquidations are currently the fifth largest in the market,
totaling $14.5 million, according to Coinglass data.
Why is #XRP down $.13? pic.twitter.com/ftjG1szV7T
— House of XRP (@genelambo) December 9, 2024
XRP Technical Analysis and
Market Metrics
The current
market structure presents concerning signals for XRP holders. On the intraday
hourly chart, XRP’s price has dropped below short-term support around $2.4597,
breaking through the trendline drawn from local lows at $2.0275. This move
suggests the potential for further short-term depreciation toward the mentioned
support levels or the trendline extending from the late-November lows.
Short-Term Support and
Resistance Levels (H1 Chart)
Support
Zones:
- $1.5971:
The peak from November 24. - $1.9951:
Local highs from late November to early December. - $2.2075:
The trendline coinciding with early December lows.
Resistance
Zones:
- Trendline
originating from December 5. - $2.4957: A
zone defined by early December highs. - $2.7897:
Local highs from December. - $2.8681:
Another set of local highs from December.
On the
daily chart (D1), the long-term outlook for XRP remains bullish, with a
projected rise toward the $5 mark. This optimistic forecast is based on a
technical pattern evident on the chart. A “pole” formed throughout
November, followed by the current correction resembling a “flag.” A
breakout above this flag pattern could result in a measured target near double
the current price levels.
At the same
time, XRP is holding support at the 23.6% Fibonacci retracement level, near
$2.33, which could provide a foundation for potential recovery if buying
pressure increases.
Some of the forecasts are even more ultra-bullish:
However, in
the short term, the funding rate has turned negative at -0.0885%, suggesting
strong bearish sentiment in derivatives markets. Open interest has declined by
4.25%, reflecting diminishing trader confidence.
Fundamental Factors for
XRP Price
Bitcoin’s Dominance
Bitcoin’s
historic breakthrough to $100,000 has redirected market focus and capital
flows. While BTC’s November rally provided support for XRP, investor focus has
now shifted back to the leading cryptocurrency. This shift has led to increased
capital inflows into BTC, resulting in a relative decline in demand for
altcoins like XRP.
Regulatory Environment
Despite
Trump’s nomination of a pro-crypto SEC chair candidate, ongoing regulatory
uncertainties continue to impact XRP’s market performance. The previous legal
battles have left a lasting impact on investor sentiment.
Historical Context and
Price Patterns
Before this
decline, XRP had experienced remarkable growth, reaching $2.90 in early
December 2024. This surge represented a 375% increase over 30 days, potentially
setting up conditions for the current correction.
XRP Price Prediction, FAQ
Section
Why is XRP falling?
XRP is
falling due to a combination of factors, including profit-taking after
November’s rally, bearish sentiment in derivatives markets, and broader market
liquidations. Over $14.5 million in leveraged long XRP positions were
liquidated in the last 24 hours, amplifying the downward pressure.
Additionally, market attention has shifted toward Bitcoin following its
historic surge to $100,000, diverting capital flows away from altcoins like
XRP.
Will XRP ever go up in
price?
Despite the
current decline, XRP’s long-term outlook remains bullish based on technical
patterns such as the flag formation on the daily chart. If the price breaks out
above the current correction zone, it could target levels near $5. However,
this is contingent on increased buying pressure and improved market sentiment.
How low can XRP price
fall?
In the
short term, XRP could test lower support levels around $2.2075 or $1.9951, as
suggested by the intraday chart. A breach of these levels might push the price
toward $1.5971, the peak from late November. The price could also revisit the
23.6% Fibonacci retracement level at $2.33 if selling pressure persists.
Is XRP worth holding?
XRP remains
a speculative asset with both high risks and high rewards. Its long-term
bullish potential, as indicated by technical analysis, may appeal to investors
with a higher risk tolerance. However, ongoing regulatory uncertainties and
market volatility require careful consideration. Holding XRP should align with
an investor’s broader strategy and risk appetite.
This article was written by Damian Chmiel at www.financemagnates.com.
[ad_2]
Source link
