XRP Declines as Bitcoin Reaches $103,000
XRP experienced a 13% drop on December 5, falling to $2.30, while Bitcoin surged to an all-time high of $103,000. This came after XRP hit a multi-year high of $2.90 on December 3, marking a 25% loss within just two days. XRP’s market capitalization also fell by 8%, resulting in a loss of its position as the third-largest cryptocurrency to Tether (USDt).
XRP’s Outperformance of Bitcoin Comes to an End
XRP had outperformed Bitcoin significantly between November 1 and December 3, rising 354% compared to Bitcoin’s 45.5% increase. However, as Bitcoin reached the $100,000 milestone, XRP’s BTC ratio fell to 0.00002334 by December 5, signaling a shift in market dynamics and investor attention.
Liquidations and Open Interest Decline Contribute to Selling Pressure
The recent price drop was further driven by the liquidation of $12.8 million in long XRP positions, adding selling pressure to the cryptocurrency. XRP’s open interest (OI) also fell to $4.3 billion, down from $722 million in November. This decline in OI signals that traders are becoming more cautious as market uncertainty increases.
Technical Indicators Show Potential for a Rebound
Despite the recent decline, technical analysis suggests that XRP could still rebound. A bull flag pattern has formed on the four-hour chart, indicating the possibility of a continuation of the previous uptrend. Breaking the $2.37 resistance level could lead to a new all-time high at $4.83.
Support Levels and Market Outlook
XRP’s RSI has dropped to 52 from 82, suggesting weakened momentum. If XRP fails to maintain support at $2.37, the price may retest key support levels such as $2.05 or $1.68. These levels will be crucial in determining whether XRP can recover or if the bearish trend will persist.
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