As a seasoned analyst with over two decades of experience in the volatile world of cryptocurrencies, I’ve seen my fair share of market highs and lows. The rapid rise and subsequent fall of XRP has been quite intriguing to me.
Initially, XRP soared into the market with an impressive growth of over 100%, earning a spot among the top 3 global cryptocurrencies, following Bitcoin and Ethereum. However, it no longer holds that position today.
Over the course of a single trading day, the market value of Ripple Labs’s well-known token XRP (XRP) has significantly dropped by around 12%, bringing its total market cap down to roughly $127 billion. However, this token had been the talk of the town in November following a massive increase of 344% over the course of one month, which is more than four times greater than Bitcoin (BTC)’s rise during the same period.
As per CoinMarketCap data from December 5th, the token ranking has shifted and Tether’s USDT is now back in third place, boasting a market capitalization of approximately $135 billion.
The primary reason for the market cap reduction was self-corrections in the token’s value, which dropped significantly from $2.57 to $2.25, translating to a decrease to double-digits. Additionally, trading volume saw a decline of approximately 46% to reach $23.28 billion.
In simpler terms, the supporters of Ripple were optimistic that the token’s value would break its current record high of $3.84, but according to crypto.news, a sudden drop is expected instead.
3 reasons why XRP’s price is predicted to crash
Initially, it’s noticed that a possible reversal or decline occurs when transactions exceed both their short-term and long-term averages. This suggests that the price might revert back towards its typical value.
Next, it appears that the two technical indicators for the token, specifically the Relative Strength Index (RSI) and Stochastic Oscillator, suggest that the token might be overbought. This could mean that it may exhibit some vulnerability or potential weakness in the future.
Third, the outdemand outpaces supply, which may show that the token is in a markup position.
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2024-12-05 05:38