- XRP saw a 10.20% market drop after a 371% surge, as Bitcoin’s dominance overshadowed altcoins.
- The price of XRP dropped from $2.57 to $2.25, while trading volume fell 36% amid Bitcoin’s rise.
- With rising exchange reserves, XRP faces potential profit-taking, but a rebound could occur if Bitcoin slows.
Ripple’s XRP has seen a huge market drop after a strong rise in the month of November. From a surge of 371% in a month, the token is now experiencing a 10.20% decline in market capitalization, which is now at $137.07 billion. This has happened as the attention has been focused on the Bitcoin which has left XRP behind.
The price of Ripple token had risen significantly in November, reaching record high due to which investors remained bullish, with the token performing better than other altcoins and even surpassing Bitcoin by 40%. Nevertheless, as Bitcoin finally breaks the $100,000 barrier, attention turns to the leading cryptocurrency, leaving token behind. Therefore, the price of XRP reduced from $2.57 to $2.25, and the trading volume went down by 36.42%, to $26.19 billion.
Source: TradingView
Rising XRP Exchange Reserves
However, one area of concern is the rise in XRP exchange reserves which may indicate that traders are planning to sell or take profits further indicating that the current phase may not be one of sustained growth but rather profit taking.
Source: CryptoQuant
Bitcoin’s upward trend may very well determine the future of cryptocurrency. Some believe that if the bitcoin’s price trend decreases then the other altcoins including token is likely to recover. Ripple’s XRP is trading within an expanding channel, however, it recently retraced below this structure. Despite the indication that token could continue to fall to $1.83- $1.94, low sales volumes mean that a reverse could occur if buy pressure is seen again.
Source: TradingView
XRP’s Path to Recovery
This could give token the opportunity to continue climbing as Bitcoin’s price is anticipated to level out at approximately $108,000. However, the RSI and Stochastic Oscillator have showed that the price of token is overbought, and there might be a short term retracement. Also, when the supply is reduced when the demand is on the rise; this may lead to more pressure on the price of coin before it starts to recover.
The near-term perspective of XRP is still rather unstable, yet some traders expect the token to recover as soon as BTC stops growing. This means, if Bitcoin continues to rise hitting record highs and altcoins experience another bull run, coin might get another opportunity to hit its record high and move up. The following weeks will show if it will be possible for token continue its growth or if it will return back to the previous values.
