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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 06, 2024 07:30 UTC
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XRP Price Crashes 18% as Bitcoin Dominance Rises: What’s Next?
XRP’s price declines by 18% amid rising Bitcoin market dominance concerns.
XRP loses its top-three crypto rank in market cap after Ripple delays stablecoin launch.
XRP faces resistance at $2.50, with potential to drop near $2.00.
XRP has been on an impressive ride, surging 335% in just one month. But after hitting a yearly high of $2.85 on December 3, the cryptocurrency is now facing a potential major drop. In the blink of an eye, XRP has already lost nearly 18% of its value.
With so much volatility in the air, many are wondering about what’s next.
Bitcoin Dominance Is the Real Threat
Crypto expert Pav Hundal warns that if Bitcoin dominance continues to rise, XRP could see a significant price drop. As money flows back into Bitcoin, investors may start selling off altcoins like XRP, potentially undoing its recent gains.
Currently, Bitcoin dominance stands at 55.28%, a slight dip from earlier this week. However, if it rises to 60-70%, Hundal suggests that we could see a shift as investors move their funds from altcoins like XRP back into Bitcoin.
XRP’s recent rally has drawn attention, with open interest in XRP reaching new highs. However, this increase in leveraged positions, combined with the price retracing, could lead to massive liquidations if the market continues to decline.
Hundal points out that long positions in XRP are still being added, even as prices fall, which could indicate that the market is entering a “dangerous zone.”
XRP/BTC Ratio Shows Mixed Signals
The XRP/BTC ratio, which shows how XRP is performing compared to Bitcoin, currently stands at 0.00002375. This ratio has increased by 2.7% since December 5 and by 47% over the past month. Hundal suggests that if Bitcoin’s price stabilizes, it could calm the market and boost trading activity across the board.
XRP’s recent price surge has caught the attention of many investors—read our XRP price prediction to see where it’s headed next and stay ahead of the curve!
Why Are Investors Concerned?
Adding to the uncertainty, Ripple’s delay in launching its RLUSD stablecoin has caused concern among investors. This setback has led XRP to fall behind USDT, losing its position as the third-largest cryptocurrency by market capitalization.
Where Will XRP Go From Here?
XRP is currently trading at $2.37, reflecting a slight price drop over the past 24 hours. If the price drops by another 7%, around $104 million in XRP long positions could be wiped out. The failure of XRP to break through the $2.50 resistance level is putting additional pressure on the token, with its market cap now below $134 billion.
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XRP’s next support level is around $2.20, and if the bearish trend continues, it could drop further to $2.00. However, if XRP manages to break through the $2.50 resistance, it could rise to $2.70 or even $3.00.
With the market’s unpredictable nature, XRP’s future is uncertain, and traders will need to stay vigilant.
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 $2.34
Yes 
No 
