Why did XRP fall today?
Worse yet, since June 2024, we haven't seen XRP experience three consecutive weeks of decline. Now it's getting closer to that critical $2 support level. Is it about to take a big dive? Let's analyze it together.
Alarm! Alarm! Key data is all red!
1️⃣ The futures market took a big hit
XRP's futures market feels like a deflated balloon, unable to bounce back. The open contracts have decreased by over 54% in three weeks, that's more than $2 billion gone just like that! Moreover, the financing rate has turned negative, which is a clear signal that traders believe it will drop further.
2️⃣ No movement from Binance
Investors in the spot market don't seem in a hurry to buy at low prices. Data from CryptoQuant indicates that since the massive sell-off in mid-December, Binance's XRP reserves have remained relatively unchanged. What does this mean? Investors might be worried about losing money again after buying.
3️⃣ The market has stagnated with the holidays
The holidays, besides good food and fun, have brought a significant decline in spot trading volume. With bulls taking a break, XRP's price is being firmly pressed down by this bearish momentum.
XRP's price is truly weak and disheartening
Technically speaking, XRP is indeed on a downward trend right now. Although this altcoin broke through the symmetrical triangle pattern on the daily chart, the situation isn't optimistic. As a result, the price might drop into the “puddle” between $1.80 and $1.95.
Looking at the 4-hour chart, XRP has again dropped below the critical 200-day EMA. The last time this happened was in November, but the bulls quickly rebounded. How about this time? Sigh, the situation is different now.
A cryptocurrency analyst named @DomCrypto said, “XRP's price trend is really weak right now. If the $2 level can't hold, the next target is $1.90. Although I might be wrong, I'm already prepared for another drop.
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