Originally published on: December 05, 2024
The XRP price took a 13% nosedive in the past 24 hours, landing at $2.30 on Dec. 5, a stark contrast to Bitcoin’s breakthrough to $100,000. This decline marks a correction that commenced on Dec. 3, resulting in XRP shedding 25% of its value since hitting a multi-year peak of $2.90.
This downward trend has caused XRP’s market capitalization to dwindle by 8% over the same period, slipping below Tether USD (USDt) to secure fourth place.
Let’s delve deeper into the factors fueling XRP’s recent sell-off.
In a surprising turn of events, XRP outshined Bitcoin from November, soaring approximately 354% between Nov. 1 and Dec. 5, eclipsing BTC’s 45.5% uptrend during the same timeframe.
Amidst high network activity and generally positive market sentiment, XRP had gained the upper hand against Bitcoin in November, reaching a 3.5-year high of 0.00003012 on Dec. 3. However, this ratio plummeted to 0.00002334 on Dec. 5, erasing all gains from Dec. 1 to Dec. 3.
As Bitcoin soared above $100,000, XRP experienced over $12.8 million in long liquidations juxtaposed with $7 million in short liquidations on Dec. 5. This likely contributed to the downward pressure on XRP’s price.
Additionally, XRP’s futures’ open interest declined from $4.3 billion to a lower extent recently but still remained substantially higher compared to early November’s $722 million.
Despite the bearish scenario, a bullish continuation setup in the form of a bull flag pattern has emerged on XRP’s four-hour chart. If XRP manages to close decisively above the upper trendline of the flag at $2.37, it could surge to a new all-time high of $4.83.
However, if the Relative Strength Index (RSI) continues its downward trend from overbought levels to 52, there could be a potential deeper pullback, with support levels at $2.05 and $1.68.
In conclusion, it’s essential to conduct thorough research and analysis before making any investment or trading decisions. Stay informed and explore more articles to enhance your market insights. Subscribe to our Markets Outlook newsletter for exclusive weekly updates and valuable trading strategies.
