XRP Declines 13%, Lags Behind Bitcoin’s $100K Rally

XRP’s Price Declines as Bitcoin Reaches New Heights

On December 5, XRP’s price dropped 13%, trading at $2.30, while Bitcoin surged to a new all-time high of $103,000. This was a sharp correction from XRP’s $2.90 peak on December 3, resulting in a 25% loss in just two days. XRP’s market capitalization fell by 8%, and it lost its position as the third-largest cryptocurrency to Tether (USDt).

XRP’s Outperformance of Bitcoin Turns Around

XRP had outperformed Bitcoin significantly between November 1 and December 3, with a 354% gain compared to Bitcoin’s 45.5% increase. However, Bitcoin’s rally past $100,000 caused XRP’s BTC ratio to fall to 0.00002334 by December 5, reversing its earlier gains and leading to a shift in market sentiment.

Liquidations and Open Interest Drop Contribute to XRP’s Decline

The correction was worsened by the liquidation of $12.8 million in long XRP positions, adding additional selling pressure. XRP’s open interest (OI) also dropped to $4.3 billion, down from $722 million in November, signaling that traders are becoming more risk-averse due to increasing market uncertainty.

Technical Indicators Show Potential for Recovery

Despite the recent decline, XRP’s technical indicators suggest that there may still be room for recovery. A bull flag pattern has emerged on the four-hour chart, signaling that XRP could continue its upward trend. A breakout above the $2.37 resistance level could lead to a new all-time high at $4.83.

Support Levels for XRP to Watch

XRP’s RSI has dropped from 82 to 52, reflecting weakened momentum. Failure to maintain support at $2.37 could lead to retesting lower levels at $2.05 or $1.68. These critical levels will be important in determining whether XRP can recover or if the downward trend will continue.