Why does the XRP Price Keep Dropping? Here's the Explanation!

Bittime - Price XRP has jumped significantly in the last few days, beginning experiencing a sharp decline of up to 10% on December 10, 2024. 

This decline was the largest in the last two months. Why does the price of XRP keep falling? Read this article to find out the explanation!  

Causes of XRP Prices Keep Dropping: Ripple CEO Interview 

Source: Bittime.com

One of the main reasons why the price of XRP continues to fall is the interview of the CEO of Ripple, Brad Garlinghouse, on television programs CBS’s 60 Minutes. 

In the interview, many felt Garlinghouse missed an important opportunity to highlight Ripple's victory in the legal case with the SEC that XRP is not a security.

Rather than discussing this, the interview focused more on the challenges Ripple faces. This is considered a less strategic step.

After the Ripple CEO's interview, the price of XRP fell steadily to touch $2.36, recording a sharp decline in just one day.

Read Also: Meme Coin XRP Ledger Strengthens: ARMY, BEAR, and MAG 

Causes of XRP Prices Keep Dropping: Massive Liquidation and Selling

Source: Coinmarketcap in Finance Magnates.com

The next factor that caused the XRP price to fall steadily was a large spike in long position liquidations (long positions) on XRP. 

In the last 24 hours, more dare doing $14.5 million long positions are liquidated. Total crypto market liquidations during this period reached $358 million, and XRP was one of the worst affected.

Additionally, XRP trading activity increased sharply with transaction volumes increasing $12 billion in a day. 

Although this volume shows high market interest, heavy selling pressure actually caused XRP's market capitalization to fall to less than $136 billion, and again below Tether (USDT).

XRP Prices Keep Dropping: Technical Analysis 

Even though currently the price of XRP continues to fall, dare doing From a technical perspective, XRP has broken through several important support levels, including numbers $2,45. 

Currently, the price of XRP is approaching level Fibonacci retracement 23,6% Of $2,33. This level is considered a potential zone for recovery if buying pressure increases, but the short-term sentiment for XRP is still bearish. 

The derivative funding rate shows a negative number of -0,0885%, which indicates strong selling pressure in the futures market. 

Besides that, open interest fell 4.25%, indicating a decline in traders' confidence in the token's short-term prospects.

XRP Prices Keep Dropping: There is Still Hope

Even though currently the price of XRP continues to fall, there is still hope for some of XRP's long-term prospects. If XRP manages to break through $3, bullish momentum is expected to return and open opportunities towards the target $5. 

However, for now, the XRP market still has to deal with negative sentiment and wait for a stronger recovery. For investors, you have to focus on the movement of critical levels like thisrti $2,33 And $3 andto determine the next strategy.

Read Also: Advantages of XRP and List of Banks That Use XRP for Transactions

XRP FAQs

What is XRP and what is its use?

XRP is a digital asset created by Ripple Labs, and designed to facilitate cross-border payments. XRP blockchain technology enables transactions in just a few seconds with very low fees making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP is designed to support cross-border payment systems with a focus on speed and cost efficiency, different from Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining so it is more energy efficient.

How to Buy XRP?

XRP can be purchased via various exchange platforms such as Bittime, just by visiting the trade page on the official Bittime website. 

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Mustafa Mulla, Why XRP Is Going Down: 8% Drop Explained!, accessed December 10, 2024.

Damian Chmiel, Why Is XRP Going Down? Price Experiences Steepest Decline in Two Months, accessed December 10, 2024.

Author: IPR