Originally published on: December 05, 2024
XRP took a hit, dropping by 13% within 24 hours to trade at $2.30 on December 5, moving in the opposite direction of Bitcoin, which broke the $100,000 barrier.
This downturn marks a correction that began on December 3, resulting in XRP losing 25% of its value since reaching a multi-year high of $2.90.
Furthermore, XRP’s market capitalization has decreased by 8% to $133 billion over the same period, slipping below Tether USD (USDt) to the fourth position.
The ongoing sell-off of XRP can be attributed to several factors. In November, XRP outshone Bitcoin, rallying approximately 354% between November 1 and December 5, compared to Bitcoin’s 45.5% increase during the same timeframe.
Positive market sentiment and increased network activity drove XRP to a 3.5-year high against Bitcoin on December 3. However, by December 5, this ratio plummeted, erasing all gains made between December 1 and December 3.
Simultaneously, as Bitcoin surged past $100,000, more than $12.8 million worth of long XRP positions were liquidated on December 5, leading to downward price pressure.
Despite these challenges, XRP’s price action has created a bullish flag pattern on the four-hour timeframe, suggesting a potential new all-time high of $4.83 if the price breaks above $2.37.
While technical indicators like the relative strength index (RSI) show potential for a deeper pullback, traders remain optimistic about altcoins like XRP.
Please note that this article does not provide investment advice or recommendations. All trading decisions involve risks, and readers should conduct their own research before making any investment decisions. For more market insights, subscribe to our Markets Outlook newsletter to stay updated on investment opportunities and trading strategies. By subscribing, you agree to our Terms of Services and Privacy Policy.