XRP Price Reversal: Understanding the Recent Decline

XRP, the native cryptocurrency of the Ripple network, experienced a significant reversal on December 9, mirroring the performance of Bitcoin and other altcoins. The XRP price dropped to a low of $2.40, down by 16.2% from its highest level this year, bringing its market cap to $138 billion.

The Impact of Brad Garlinghouse’s 60 Minutes Interview

Following the interview, Brad Garlinghouse, Ripple Labs’ CEO, took to social media to express his concerns about the editing of the program. He noted that the interview did not mention XRP’s status as not being a security, a position confirmed by a federal judge in 2023.

“Crypto made its debut on @60Minutes tonight – there’s no doubt that these technologies will continue to become more and more mainstream – with influence and reach that will only continue to grow.”

Garlinghouse also criticized the program for implying that XRP had no utility, likening this perspective to early criticisms of the internet. He maintained that Ripple Labs handles billions of dollars in KYC-compliant transactions for institutional customers.

XRP’s Recent Performance and Future Prospects

XRP has performed strongly over the past few months, becoming one of the best-performing cryptocurrencies. It surged 382% from its lowest level in November, positioning it as the third-biggest cryptocurrency in the market.

This rally was fueled by optimism that Donald Trump’s Securities and Exchange Commission would adopt a more crypto-friendly stance compared to Gary Gensler’s tenure. Investors anticipate that Paul Atkins may decide to do away with the pending appeal by the agency, and the agency may approve a spot XRP ETF as soon as in 2025.

Technical Analysis: Has XRP Price Peaked?

The weekly chart shows XRP price surged to $2.90 last week but has since dropped to $2.40 following Garlinghouse’s 60 Minutes interview. This decline has mirrored the broader market trend, as Bitcoin and other altcoins also began the week in the red.

Despite the pullback, XRP remains above the key resistance level of $1.9700, its peak in April 2021. Ripple is still significantly above the 50-week and 200-week Exponential Moving Averages.

The most likely scenario suggests XRP could drop to retest support at $1.9700 before resuming its uptrend. This break-and-retest pattern is a common continuation indicator. Further XRP price gains are expected if the coin surpasses the year-to-date high of $2.90.

Key points to consider:

  • XRP price has performed strongly over the past few months, becoming one of the best-performing cryptocurrencies.
  • The recent decline is likely a result of the broader market trend, rather than a fundamental issue with XRP.
  • XRP remains above key resistance levels and is expected to resume its uptrend.
  • Further XRP price gains are expected if the coin surpasses the year-to-date high of $2.90.

Stay up-to-date with the latest news and analysis on XRP and other cryptocurrencies on Global Crypto News.

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