Santa Claus rally loses momentum, XRP falls below $2

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XRP Price Analysis and Market Dynamics

XRP price fluctuations

Lowest Price of the Day: Earlier today, the price of XRP fell to $1.99 on the Binance exchange, marking the first time it fell below the $2 mark since December 20. The coin plunged more than 6% in the past 24 hours, becoming the worst performer among the top 10 cryptocurrencies.

Market Performance: In comparison, Bitcoin (BTC) and Ethereum (ETH) fell 2.2% and 0.7% respectively. XRP’s performance has significantly lagged, indicating that its market sentiment is more bearish than other mainstream cryptocurrencies.

Liquidations and Market Sentiment

Liquidation situation: According to CoinGlass data, approximately $10 million in XRP was liquidated in the past 24 hours, reflecting the strong short sentiment in the market. This further reinforces the instability of the market in the short term.

Rise and Fall of XRP

November Breakout: XRP hit a 282% rise in November, becoming the focus of the market. However, despite briefly trading above $2.9, XRP’s current price has retraced significantly. This round of gains was mainly driven by the market's expectations that U.S. regulatory policies may become more friendly.

Early December Highs: XRP hit a new high of $2.9 in early December, but the token’s gains did not continue and instead showed a downward trend in recent days.

Regulatory expectations and challenges

Developments in the SEC case: Although the market was once optimistic that the U.S. Securities and Exchange Commission (SEC) might drop its prosecution of Ripple, the New York Post recently reported that the SEC’s attitude may not have fundamentally changed. The report pointed out that Paul Atkins, the successor nominee for SEC chairman, although friendly to cryptocurrencies, is not expected to relax regulations on the crypto industry. This has put market sentiment under pressure again.

Ripple USD launch fails to boost price: Although Ripple launched its much-talked-about stablecoin Ripple USD (RLUSD), it failed to significantly boost XRP’s rally. Although prices recovered slightly in the short term, they were not sustained and the market remained cautious about the future of the project.

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