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?> Will XRP price crash below $2 after erasing $6 billion in hours
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Finbold 2024-12-30 15:30:56

Will XRP price crash below $2 after erasing $6 billion in hours

Will XRP price crash below $2 after erasing $6 billion in hours

Despite experiencing an admirable run to the upside starting at the beginning of November, XRP’s momentum has shifted — and the digital asset is now seeing prices making significant moves to the downside. In the second to last week of December, XRP lost $20 billion in market cap — going from $152 billion to $132 billion. It has, unfortunately, continued this losing streak — at press time, the token’s market cap had receded to $116 billion, having shed $6 billion in a matter of hours on December 30. At press time, XRP was trading at $2.03 — down 25.09% from a December 2 high of $2.71. Although year-to-date (YTD) gains stand at 230.84%, the token has seen prices decrease by 5.88% on the daily chart on strong volume. XRP price 1-day chart. Source: Finbold XRP could easily drop beneath $2 — but would most likely recover quickly The $2 mark represents a crucial psychological barrier — a sustained drop beneath those levels would doubtlessly engender an even more bearish sentiment. With YTD returns being as impressive as they are, taking profits or reinvesting them in assets that are on the upswing is quite a rational move. XRP seems set to drop $2 in short order — and while that move will most likely cause a prolonged drop, this is still the fourth-largest cryptocurrency in the world, and the drop will most likely be temporary. Let’s take a closer look at some of the most important factors affecting XRP. Ripple Labs’ escrow system unlocks 1 billion XRP tokens on the first day of every month. That’s due to happen on Wednesday — and the increased selling pressure and supply are almost certainly going to drive prices below $2. This will most likely be temporary — XRP will, in all likelihood, trade in tandem with the wider crypto market, which primarily takes its cues from Bitcoin ( BTC ). As the fundamental theses behind the bull run haven’t shifted significantly (even accounting for the announcement of fewer FED rate cuts in 2025), it appears as if it is only a matter of time before the uptrend resumes. In addition, with the chairmanship of Gary Gensler set to end, the likelihood of XRP spot exchange-traded funds ( ETFs ) being approved is all but certain — a development that would go a long way in stabilizing price action. Featured image via Shutterstock The post Will XRP price crash below $2 after erasing $6 billion in hours appeared first on Finbold .

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