XRP’s price
has declined sharply due to massive liquidations and profit-taking following
November’s rally. The token faces bearish sentiment in derivatives markets, while Bitcoin and Ethereum attract more investor attention.
On Monday,
December 9, 2024, the price of XRP, the token used by Ripple, dropped by 9%,
hitting intraday lows of $2.36. While XRP/USDT on Binance remains near all-time
highs, today’s decline marks the steepest drop in over two months.
Why Is XRP Price Down Today?
Market Dynamics and Price Action
The
cryptocurrency market is witnessing a notable divergence as XRP experiences
significant selling pressure. According to CoinMarketCap, XRP is among the
leading decliners during Monday’s session, with its market capitalization
shrinking to just under $136 billion.
Consequently,
XRP has once again fallen below Tether (USDT) on the list of largest tokens.
This selling pressure is occurring amid increased trading activity, with a
24-hour volume of $12 billion.
Total long
liquidations amounting to $358 million in the last 24 hours have amplified the
price drop, creating a cascade effect in the market. For XRP alone, leveraged
long position liquidations are currently the fifth largest in the market,
totaling $14.5 million, according to Coinglass data.
Why is #XRP down $.13? pic.twitter.com/ftjG1szV7T
— House of XRP (@genelambo) December 9, 2024
XRP Technical Analysis and
Market Metrics
The current
market structure presents concerning signals for XRP holders. On the intraday
hourly chart, XRP’s price has dropped below short-term support around $2.4597,
breaking through the trendline drawn from local lows at $2.0275. This move
suggests the potential for further short-term depreciation toward the mentioned
support levels or the trendline extending from the late-November lows.
Short-Term Support and
Resistance Levels (H1 Chart)
Support
Zones:
- $1.5971:
The peak from November 24. - $1.9951:
Local highs from late November to early December. - $2.2075:
The trendline coinciding with early December lows.
Resistance
Zones:
- Trendline
originating from December 5. - $2.4957: A
zone defined by early December highs. - $2.7897:
Local highs from December. - $2.8681:
Another set of local highs from December.
On the
daily chart (D1), the long-term outlook for XRP remains bullish, with a
projected rise toward the $5 mark. This optimistic forecast is based on a
technical pattern evident on the chart. A “pole” formed throughout
November, followed by the current correction resembling a “flag.”…
