XRP market cap turn down as the price shrink 12% in a day

XRP launched with a hundred percent growth, making it among the top 3 cryptocurrencies in the world after Bitcoin and Ethereum, but not anymore today.

Ripple Labs’ popular token XRP (XRP) saw a massive 12% drop in market value to $127 billion in just one day of trading. In comparison, this token was the top trending coin for November, up 344% in one month, and only outperformed Bitcoin (BTC) by 44% in the same period.

1-Hour XRP price chart, 05 December 2024 | Source: crypto.news

According to data from CoinMarketCap dated December 5, at the time of writing, the token position has declined and Tether’s USDT has returned to third place with a market value of $135 billion.

The decline in market value was mainly due to the token falling by double digits from $2.57 to $2.25. Trade volume also decreased by 46% to 23.28 billion dollars.

The Ripple community had to believe that the token’s performance would exceed its all-time high of $3.84, but crypto.news predicted that it would crash very soon.

3 reasons why the price of XRP is predicted to fall

First, potential retracement has been seen when trades are above its short- and long-term moving averages, indicating that the price will return to its average price.

Secondly, the token’s two technical indicators, the Relative Strength Index and the Stochastic Oscillator, indicate that it is in an overbought position and signal potential weakness.

Third, if demand outstrips supply, it could indicate that the token is in a position to increase in price.