Why XRP Price is Declining?
The price of XRP has recently dropped below $2 amidst a wider market downturn, ETF sell-offs, and overall bearish sentiment. This downturn follows a notable 12% decrease over the past week, pushing XRP under the critical $2 threshold. In the last 24 hours, XRP has seen an 8% decline, aligning with a broader market drop of 5.12% across the cryptocurrency space.
This price movement is part of an ongoing seven-day slide, driven mainly by profit-taking after the introduction of ETF products, growing fear in the market, and several technical failures. XRP’s value fell from $2.17 earlier in the day to briefly touch $2.16, signaling a sharp correction. The situation is worsened by a 30% drop in trading volume, now at $4.75 billion, pointing to decreasing interest in the market. Currently, XRP’s market capitalization stands at $130.02 billion.
Factors Contributing to XRP’s Decline
- Profit-taking after the launch of ETF products.
- Rising market fear and negative sentiment.
- Technical breakdowns affecting XRP’s price stability.
- Significant drop in trading volume (down 30%).
Investor Sentiment and Long-Term Outlook
Despite a brief rally where XRP gained 10% over the last week, the coin is now facing significant resistance, with weekly losses reaching 11%. Much of the gains from November have been erased. Long-term holders of XRP are starting to show signs of concern, as the price struggles to maintain its position above $2.
"Market sentiment has shifted from euphoria to denial, signaling further risks for XRP’s price in the short-term." – CoinGape
Currently, XRP is facing the risk of further declines, as indicated by the latest NUPL chart, which shows a growing sense of unease among investors.
Conclusion
The decline in XRP’s price is driven by broader market trends, reduced trading volume, and increasing market uncertainty. Investors are advised to watch for potential further downward pressure in the coming days.
Author's Summary: XRP’s price struggles to maintain above $2 as market conditions worsen, raising concerns among long-term holders and signaling further downside risk.