XRP entered the market with hundreds of percent growth and made it into the top 3 cryptocurrencies in the world after Bitcoin and Ethereum, but not anymore.
Ripple Labs’ popular token XRP (XRP) saw a significant 12% drop in market capitalization to $127 billion in just one trading day. In contrast, this token became the hottest coin in November after rising 344% in a month, outperforming Bitcoin (BTC) by just 44% over the same period.
According to CoinMarketCap data from December 5th, the token balance is currently at approxcrashed, bringing Tether’s USDT back to third place with a market cap of $135 billion.
The drop in market capitalization was mainly due to the corrections of the token itself, which contracted by double digits from $2.57 to $2.25. Trading volume also saw a decline of up to 46% to $23.28 billion.
The Ripple community had to believe that the token performance would surpass the new all-time high of $3.84, but crypto.news predicted that it would crash very soon.
3 reasons why XRP price is predicted to crash
Firstly, the potential pullback was observed when trades are above their short and long-term moving averages, suggesting that the price would return to its average price.
Secondly, the token’s two technical indicators, the Relative Strength Index and the Stochastic Oscillator, suggest that it is in an overbought position, indicating possible weakness.
Third, outdemand exceeds supply, which may indicate that the token is in a markup position.
