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.
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!
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.
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.
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.
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
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