- XRP faces correction after November’s meteoric 354% rally.
- Bitcoin dominance shifts capital, pressuring XRP’s price action.
XRP’s meteoric rise, which saw the token gain over 340% in the past month, is now encountering a sharp correction. Over the past seven days, XRP surged by 40%, only to drop by 5% in the last 24 hours, with trading volume declining by 51% and its market capitalization shrinking by 8% to $133 billion. This decline has pushed XRP to fourth place in market cap rankings, below Tether (USDT).
XRP Price Chart, Source: Sanbase
The current sell-off follows XRP reaching a multi-year high of $2.90 on December 3, only to retrace 25% since then. Notably, Bitcoin‘s record-breaking rally past $100,000 has shifted market focus, potentially contributing to XRP’s downturn.
Moreover, market dynamics also highlight XRP’s struggle. Data from CoinGlass shows over $12.8 million in long positions were liquidated on December 5, as open interest dropped from $4.3 billion the day prior. Bearish sentiment is apparent, with the long/short ratio at 0.98 and 50.8% of traders holding short positions.
However, technical analysis indicates mixed signals. XRP recently formed a bull flag pattern, which, if confirmed with a decisive close above $2.37, could target a new all-time high of $4.83. Conversely, failure to hold this level might see the token retest supports at $2.20 or even $2.00.
XRP Bears Hunts
Adding to the uncertainty is Ripple’s delayed RLUSD stablecoin launch, which has dampened investor sentiment. Despite the bearish pressure, significant XRP outflows worth $288 million from exchanges suggest long-term holding sentiment among whales, hinting at potential upside momentum.
As of press time, XRP trades at $2.26, down 5.4% in 24 hours, with reduced participation from traders. While the token’s strong November performance remains a highlight, its future trajectory hinges on breaking resistance levels and broader market trends.
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