Ripple’s XRP token experienced a significant drop in price from over $2.7 to under $2 in a short period due to the recent market meltdown. Although the asset has regained some ground, it is currently at a critical level that will determine whether it will continue its upward trend or fall once again.
At the beginning of the week, XRP saw a surge in price as the company announced the launch of its stablecoin. The token jumped from under $2.4 to over $2.7 before reversing course and experiencing a sharp decline alongside the broader market. The token plummeted by 28% to $1.96, attracting XRP whales to increase their holdings and leading to a partial recovery to nearly $2.4.
Currently, XRP is struggling to stay above $2.2, a crucial level according to analyst Ali Martinez. If the token can maintain this level, it may continue its bullish trend and aim for $2.7 once again. However, breaking below $2 could result in a further drop below $2 for the third time in December.
XRP briefly fell below the $2.20 mark to $2.17 before bouncing back, raising questions about the token’s year-end performance and the possibility of a Santa Claus rally. With its recent correction, XRP’s market cap has fallen below $130 billion, causing it to lose its third-place position to USDT with a market cap close to $140 billion.
In conclusion, Ripple’s XRP token has experienced sharp price fluctuations in response to the recent market downturn. As the token hovers around the $2.2 level, its future performance remains uncertain, with potential for both a bullish trend towards $2.7 or a bearish slide towards $1.96. The next few days will be crucial in determining XRP’s year-end closing price and possible market dynamics in the coming weeks.
