The quick gains charted on Wednesday afternoon across all markets disappeared 24 hours later, and the cryptocurrency industry was not spared.
Ripple’s cross-border token has taken one of the largest hits on a daily scale, dumping to its lowest price in well over two months.
Why Down So Much, XRP?
It was just 36 hours ago that XRP, alongside the rest of the market, was rocketing hard, jumping to $1.35. This came after popular analyst Ali Martinez predicted that a close above the $1.28 resistance could unlock the door for major price gains. However, the asset was rejected vigorously at that point, and the subsequent crash has been nothing short of a brutal ride.
XRP lost the $1.30 support and then did the same to the $1.20 level. It just plummeted below $1.185 for the first time since the August 22 crash. The most evident reason for this calamity is the overall market-wide collapse. After all, BTC was rejected at $81,000 and plunged to $75,000, and most altcoins followed suit.
However, XRP’s case is particularly painful, as the cross-border token is the poorest performer among the largest 30 altcoins, with its 9.5% decline on a 24-hour scale. Its market cap has tanked to $75 billion, further widening the gap with BNB ($90 billion) despite the recent major hack against Binance.
What could have driven XRP south so hard, or at least failed to prevent a more sustained rebound, is the ETF activity. Or the lack thereof. CryptoPotato reported that the funds were among the few in the green in October, but they started November with little to no demand. Monday was a minor red day, while Tuesday, Wednesday, and Thursday saw no action whatsoever, according to data from SoSoValue.
False Breakout?
As mentioned above, Martinez indeed predicted a massive move ahead when XRP was stable at $1.25. His subsequent post on X, though, leaned more bullish. He explained that over 13 million tokens were withdrawn from exchanges, which, in theory, reduced the supply immediately available to sell. Moreover, he outlined that whales’ holdings had grown by 60 million coins within a week, and both these metrics “point to growing interest from large holders.”
Lastly, he doubled down on the technical side, indicating that XRP appeared to have formed “the right shoulder of a potential inverse head-and-shoulders bottom.” As such, he concluded that $1.60 should be the next target, while a break above that key level could put XRP on the path to $2.10.
The subsequent rejection suggested that the surge to $1.35 was a false breakout, even though his data is still bullish. Nevertheless, it only goes to show that even the most prominent analysts cannot predict violent market crashes, and investors should always do their own research before allocating any funds, especially in times of extreme uncertainty.
The post Why Is the XRP Price Down to an 11-Week Low Today? appeared first on CryptoPotato.
