As a seasoned crypto investor with scars from more bear markets than I care to remember, I must admit that the recent surge and subsequent dip of XRP has me both excited and cautious. The 400% gain was certainly enticing, but as we all know too well, in this world of crypto, what goes up can also come down with alarming speed.
The price of XRP has climbed over $2.50, marking a 400% increase from when it broke through $1. This spike can be attributed to Ripple‘s advancements in its legal dispute with the SEC, as well as the current drive for more defined cryptocurrency regulations. However, XRP encountered an obstacle at around $2.40 and began to drop again.
During economic slumps, approximately $53 million worth of long positions were quickly sold off in one day, while short liquidations were limited to $13 million. More recently, an additional $12 million in long positions and $4.2 million in short positions have been liquidated, creating mounting pressure on the price of XRP.
Based on on-chain analysis, it appears that numerous small-scale investors are liquidating their investments, and even large-scale investors, often referred to as “whales,” might be offloading their holdings as well, due to the difficulty in keeping the price afloat and maintaining its support level.
Currently, everyone is closely watching the $2.00 price point. This level is significant because it frequently serves as a robust support or a turning point for potential declines. If XRP falls below $2.00, financial analysts anticipate it might slide further to around $1.88 or even $1.75. This could happen quickly due to an acceleration in liquidations.
In simpler terms, technical indicators are hinting at a similar trend. Specifically, the Daily Relative Strength Index (RSI) has decreased from overbought levels to 60.65, suggesting that the bullish energy might be slowing down. Additionally, the On-Balance Volume (OBV) indicates reduced buying activity, while the Moving Average Convergence Divergence (MACD) suggests an increase in selling pressure.
As an analyst, I’m optimistic about XRP’s potential recovery if it manages to rebound from the $2.00 mark. Such a bounce-back could potentially propel the price to $2.50 or even higher, maintaining the bullish momentum. However, should XRP fail to hold onto this support level, we might witness some sharp fluctuations that could make the road to recovery more convoluted.
Currently, the cryptocurrency has decreased by 9%, bringing its value to approximately $2.18. Additionally, there’s been a 9% dip in Market Capitalization, which now stands at around $124 billion, as per the information provided by CoinMarketCap.
Read More
- 15 Charged for converting Drug Cartels’ Cash into Cryptocurrency in U.S.
- PYTH PREDICTION. PYTH cryptocurrency
- Paul Atkins to Replace Gary Gensler as Next SEC Chair?
- OREO Unveils Six New Products for 2025
- XRP Price Eyes $2 Support Level Amidst Market Correction
- TROTOAR Gallery Bridges Local and Global Art with ‘That’s What’s Up!’
- ‘Brides’ Finds a Distributor in Neon for Latest New Vampire Horror Movie
- Ben Affleck And Matt Damon Are Back To Work Together, And An Insider Weighed In On Their Longtime Connection
- Apple Lands Anya Taylor-Joy Led Drama ‘Lucky,’ Based on Bestseller
- ‘Fast and Furious’ Star Paul Walker Remembered 11 Years After His Death
2024-12-10 19:49