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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Dec 09, 2024 13:30 UTC
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Why XRP Is Going Down: 8% Drop Explained!
XRP price dropped 8% due to Ripple CEO's 60 Minutes interview that omitted key information and triggered liquidations.
XRP still holds long-term potential, with a potential support zone at $2.33 and a bullish target of $5 if it breaks above $3.
Technical analysis indicates a potential for further short-term decline as XRP has broken below key support levels.
XRP, the cryptocurrency closely associated with Ripple, experienced a sharp 8% drop today, bringing its price down to $2.36. This unexpected dip, the steepest in over two months, has left investors puzzled, especially as the token remains near its all-time highs. So, what triggered this bearish momentum?
Ripple CEO’s Missed Opportunity?
A major factor behind XRP’s decline seems to be Ripple CEO Brad Garlinghouse’s recent appearance on CBS’s 60 Minutes. While the interview tackled some of Ripple’s challenges, it conspicuously omitted a critical point: a Federal Judge’s ruling that XRP is not a security.
This omission did not sit well with the crypto community. Garlinghouse himself expressed frustration, calling it a missed opportunity to shed light on Ripple’s ongoing legal battles. Following the broadcast, XRP’s price plummeted by 8%, hitting $2.35 within a single day.
Liquidations Add More Pressure
XRP’s drop became even worse due to a surge in liquidations. In the past 24 hours, over $14.5 million worth of long positions on XRP were liquidated. This was part of a broader $358 million sell-off across the crypto market, which triggered a ripple effect, pushing prices down further.
Increased market activity was evident as XRP’s trading volume soared to $12 billion within the last day. However, the selling pressure also dragged XRP’s market capitalization below $136 billion, pushing it behind Tether (USDT) in the cryptocurrency rankings.
Another contributing factor is profit-taking. Many investors appear to be cashing in after XRP’s strong rally earlier in November. Additionally, market attention is shifting towards Bitcoin and Ethereum, further reducing demand for XRP.
Curious about where XRP is headed? Read our long term XRP price prediction to uncover insights on potential breakouts and future trends!
Can XRP Recover? Key Levels to Watch
From a technical perspective, XRP has fallen below critical support levels, including $2.45. This suggests the potential for further short-term declines. However, there are glimmers of hope for the token.
Currently hovering around the 23.6% Fibonacci retracement level at $2.33, XRP could find support at this zone. Analysts believe that breaking above $3 could reignite bullish momentum and set the stage for a rally toward $5.
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For now, short-term sentiment remains bearish, with negative funding rates and declining trader confidence weighing on the token. Despite this, XRP’s long-term prospects remain promising, provided it can weather the current storm.
FAQs
XRP might reach a high of $3.99 or an average of $3.07.
At the time of writing, the price of 1 XRP token was $2.44
XRP is down due to a combination of liquidations, negative market sentiment, and frustration over missed opportunities in Ripple’s legal battles.
Yes 
No 
