🌎 XRP Market Capitalization Drops 12%

XRP Market Capitalization Sees 12% Decline in One Day

Once a top 3 cryptocurrency in the world, XRP has witnessed a significant decline in its market capitalization. The popular token from Ripple Labs has seen a 12% drop to $127 billion in just one day of trading.

Recent Performance

This decrease is a stark contrast to XRP’s impressive performance in November, where it surged 344% and outperformed Bitcoin (BTC) by 44% in the same period. The token’s market capitalization has now been surpassed by Tether’s USDT, with a market cap of $135 billion.

Causes of Decline

The main reason for the decline in market capitalization is the correction of the token itself, which shrunk from $2.57 to $2.25. Additionally, the volume of trading recorded a decrease of up to 46% to $23.28 billion.

Predictions of a Crash

Despite the community’s hopes for XRP to surpass its new all-time high at $3.84, predictions suggest that the token’s price may crash soon. Three key reasons support this prediction:

Potential Pullback: Trades above short- and long-term moving averages indicate a return to the average price.
Overbought Position: Technical indicators, such as the Relative Strength Index and Stochastic Oscillator, signal potential weakness.
Outdemand and Supply: The outdemand outpacing supply may indicate that the token is in a markup position.