The price of XRP has experienced significant volatility recently, with a sharp decline of up to 10% on December 10, 2024. This drop marks the largest in the past two months. Below, we explore the key factors behind this downward trend and what it means for investors.
Causes of XRP’s Price Decline
1. Ripple CEO’s Interview on CBS’s 60 Minutes
One major catalyst for the price drop was an interview with Ripple CEO Brad Garlinghouse on 60 Minutes. Many observers felt Garlinghouse missed a crucial opportunity to emphasize Ripple’s legal victory against the SEC, which confirmed that XRP is not a security. Instead, the discussion focused on Ripple’s challenges, which was perceived as a less strategic move.
Following the interview, XRP’s price steadily fell to $2.36, reflecting a steep single-day decline.
2. Massive Liquidation and Selling Pressure
A surge in long-position liquidations exacerbated the decline. Over $14.5 million in long positions were liquidated within 24 hours, contributing to broader crypto market liquidations totaling **$358 million**.
Additionally, XRP trading volume spiked to $12 billion** in a single day. While this indicates high market activity, heavy selling pressure pushed XRP’s market cap below **$136 billion, trailing behind Tether (USDT).
3. Technical Analysis: Bearish Signals
From a technical standpoint, XRP breached critical support levels, including $2.45**, and approached the **23.6% Fibonacci retracement** level at **$2.33. While this zone could serve as a potential recovery point, short-term sentiment remains bearish.
Key indicators:
- Negative funding rate (-0.0885%) signals strong selling pressure.
- Open interest dropped 4.25%, reflecting declining trader confidence.
Is There Hope for XRP?
Despite the downturn, long-term prospects remain intact. A breakout above $3** could reignite bullish momentum, with a potential target of **$5. Investors should monitor critical levels ($2.33** and **$3) to strategize accordingly.
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FAQs
What is XRP’s primary use case?
XRP facilitates fast, low-cost cross-border payments, making it ideal for international transactions.
How does XRP differ from Bitcoin?
Unlike Bitcoin, XRP focuses on payment efficiency and uses a mining-free consensus mechanism, reducing energy consumption.
Where can I buy XRP?
XRP is available on major exchanges. Ensure you choose a regulated platform for secure transactions.
For deeper insights, explore our detailed guides on blockchain technology and crypto investments.