Christmas Santa's rebound momentum weakens, XRP falls below $2

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XRP Price Analysis and Market Dynamics

XRP Price Volatility

Intraday Low: Earlier today, the price of XRP on Binance fell to $1.99, marking the first time it has dropped below the $2 mark since December 20. The token has plummeted over 6% in the past 24 hours, making it the worst performer among the top ten cryptocurrencies.

Market Performance: In comparison, Bitcoin (BTC) and Ethereum (ETH) fell by 2.2% and 0.7%, respectively. XRP's performance is significantly lagging, indicating that its market sentiment is more pessimistic than that of other major cryptocurrencies.

Liquidation and Market Sentiment

Liquidation Situation: According to CoinGlass data, approximately $10 million of XRP has been liquidated in the past 24 hours, reflecting a strong bearish sentiment in the market. This further amplifies the short-term instability in the market.

XRP's Rise and Fall

November Breakthrough: XRP had a remarkable increase of 282% in November, becoming the market's focal point. However, despite briefly breaking above $2.9, XRP's current price has significantly retraced. This surge was mainly driven by market expectations that U.S. regulatory policies might become more favorable.

Early December Peak: XRP reached a new high of $2.9 in early December, but the token's upward momentum did not sustain and has recently shown a downward trend.

Regulatory Expectations and Challenges

SEC Case Development: Although the market had been optimistic, believing that the U.S. Securities and Exchange Commission (SEC) might drop its lawsuit against Ripple, recent reports from the New York Post suggest that the SEC's stance may not have fundamentally changed. The report indicated that the nominee for the new SEC chair, Paul Atkins, while friendly towards cryptocurrencies, is not expected to ease regulations on the crypto industry. This has put pressure on market sentiment once again.

Ripple USD Launch Fails to Boost Prices: Despite Ripple launching the much-anticipated stablecoin Ripple USD (RLUSD), it has not significantly boosted XRP's upward momentum. Although there was a slight price recovery in the short term, it was not sustainable, and the market remains cautious about the project's future.

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