XRP, the cryptocurrency associated with Ripple, encountered a notable decline of approximately 8% today, reducing its price to $2.36. This represents the most significant drop in over two months, despite the token remaining near its all-time highs. The abrupt decrease has prompted investors to ponder the factors contributing to this bearish momentum.
XRP’s Price Drop by 8%
A pivotal element behind the drop was Ripple CEO Brad Garlinghouse’s recent interview on CBS’s 60 Minutes. The discussion highlighted Ripple’s challenges but conspicuously omitted a crucial detail: a Federal Judge’s ruling that XRP is not a security. This omission left many in the crypto community disheartened and frustrated Garlinghouse, who viewed it as a missed chance to address Ripple’s legal issues. Following the broadcast, XRP’s price plummeted by 8%, hitting $2.35 within a single day.
Liquidations Add More Pressure
The decline in XRP’s value was exacerbated by a surge in liquidations. Over the past 24 hours, more than $14.5 million worth of long positions on XRP were liquidated. This was part of a widespread $358 million sell-off across the cryptocurrency market, which triggered a cascading effect, further depressing prices. XRP’s trading volume soared to $12 billion in the last day, indicating heightened market activity. However, this selling pressure also resulted in XRP’s market capitalization falling below $136 billion, causing it to slip behind Tether (USDT) in the rankings of top cryptocurrencies.
Contributing to the pressure, numerous investors appear to be securing profits after XRP’s robust rally in November. Meanwhile, market focus is shifting towards Bitcoin and Ethereum, leaving XRP with diminished demand.
Curious about where XRP is headed? Read our long-term XRP price prediction to uncover insights on potential breakouts and future trends!
What’s Next for XRP?
From a technical perspective, XRP has breached critical support levels, including $2.45, suggesting the possibility of further price declines in the short term. On a brighter note, XRP retains long-term potential. It currently hovers around the 23.6% Fibonacci retracement level at $2.33, which may serve as a support zone. Analysts speculate that if XRP can surpass $3, it could set the stage for a rally towards $5. However, short-term sentiment remains bearish due to negative funding rates and waning trader confidence.
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FAQs
How much will XRP be worth by the end of 2025?
XRP might reach a high of $3.99 or an average of $3.07.
How much is XRP worth?
At the time of writing, the price of 1 XRP token was $2.44.
Why is XRP down?
XRP is down due to a combination of liquidations, negative market sentiment, and frustration over missed opportunities in Ripple’s legal battles.
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