XRP’s price has plummeted by 9% on Monday, December 9, 2024, hitting intraday lows of $2.36, as the token faces intense selling pressure in derivatives markets.
The decline marks the steepest drop in over two months and is attributed to profit-taking after November’s rally, as well as increased trading activity. Total long liquidations totaling $358 million have amplified the price drop, with leveraged long XRP positions being the fifth largest in the market.
Despite this downturn, XRP’s long-term outlook remains bullish, based on technical patterns such as a flag formation on the daily chart. If the price breaks out above the current correction zone, it could target levels near $5. However, investors should carefully consider the ongoing regulatory uncertainties and market volatility before making any decisions.
As Bitcoin’s historic breakthrough to $100,000 redirects market focus and capital flows, XRP’s demand has decreased, contributing to its decline. The token is also facing increased bearish sentiment in derivatives markets, with a funding rate of -0.0885% and declining open interest.
Source: https://www.financemagnates.com/cryptocurrency/why-is-xrp-going-down-price-experiences-steepest-decline-in-two-months