Why is Ripple (XRP) price down again today?

TL:DR;

While most cryptocurrencies have turned red amid another market-wide pullback, XRP’s price has dropped by a larger percentage than most and is shaky at $2. Analysts speculate on the asset’s potential during this cycle and have outlined an important support level to hold; otherwise XRP could plummet towards $1. XRPUSD. Source: TradingView

XRP rode the Trump-induced rally like very few altcoins did, rising from $0.6 to a multi-year high of nearly $3 in about a month. However, its run stalled in early December and the asset failed to break above $3 and hit a new all-time high.

While the launch of its much-anticipated stablecoin in mid-December led to immediate and impressive gains, its momentum has once again fizzled out. In fact, XRP is down 25% from its local peak on December 17th.

The past 24 hours have also been painful for Ripple’s cross-border token, which has fallen 6% and is struggling to stay above $2.

Many industry analysts have now described the $1.96 support as a crucial level that needs to be held for XRP to continue its impressive performance. If it falls, however, the cryptocurrency could drop as low as $1, according to Andrew Griffiths.

#XRP Xrp has been trading in what appears to be a bullish pennant. But if this bullish pattern fails, it would quickly fall to the low $1 range. As Bitcoin has topped the year, we can see lower prices for Xrp. Losing $1.98 Would Send Xrp Into A Precipitous Fall… pic.twitter.com/8K9OPp63rc

— Andrew Griffiths (@AndrewGriUK) December 29, 2024

Instead, XRP will have a chance to resume its rally and aim for a new all-time high during this cycle only if it bounces off this support line, predicted another analyst: MAGIC.

#XRP it continues to hold above 1.98 (blue trend line) and appears to be forming a bullish flag for the week. If this bullish flag fails and the price falls below the 1.98 level, XRP could fall quickly. 1.98 is a critical support and 3.53 is the main upside resistance. pic.twitter.com/hpyXHQXsqk

— MAGIC (@MagicPoopCannon) December 29, 2024

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