Look!!! Why did the price of XRP fall today?

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Recently, XRP has become one of the worst performing currencies in the crypto market, with a price drop of nearly 30% and failing to stabilize above $2. What are the key factors behind this trend? Can XRP rebound in the future?

Reasons for the decline of XRP

Token unlocking pressure

One of the main reasons for the decline in XRP prices is the market's expectation of the unlocking of XRP tokens on January 1, 2025. At that time, Ripple will unlock 1 billion XRP tokens. Historical data shows that such unlocking events usually bring selling pressure, resulting in increased volatility in XRP prices.

Macroeconomic factors

In addition, the Fed's recent interest rate cut decision also had an impact on the market. Although the 25 basis point rate cut was in line with expectations, the Fed's cautious outlook for 2025 and only two rate cuts are expected, which has exacerbated market uncertainty.

Market sentiment

According to Coinglass data, XRP's open interest has declined, indicating that some traders have closed their positions due to increased market volatility, further increasing the downward pressure on XRP.

Future trend of XRP

In the current bear market environment, XRP has failed to maintain the key support level of $2.20, and the price has been in a narrow range recently. Looking back at the consolidation phase earlier this year, XRP has experienced a similar period of stagnation and rebounded in November. If this pattern continues, XRP may have to wait until February 2025 to break through the $3.00 mark.

However, if there is a large-scale sell-off in the market, the price of XRP may fall to $1.58, putting more pressure on investors.

Hope of rebound: Breaking through resistance to see $3.00

Despite the current high uncertainty in the market, there are also positive signs. If XRP can break through the short-term resistance of $2.73, it is expected to hit $3.00 again, and may even hit a new high of more than $3.31

The future of XRP is full of variables

XRP is currently facing multiple pressures. The price may continue to be under pressure in the short term, but there is also an opportunity for a breakthrough rise. Investors need to pay close attention to market dynamics, especially the impact of token unlocking and macroeconomic changes on prices. If XRP can break through key resistance, there is still potential for a rebound in the future.

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