XRP hit the market with hundreds of per cent of growth and made it enter the top 3 cryptocurrencies in the world after Bitcoin and Ethereum, but not today anymore.
Ripple Labs’s popular token XRP (XRP) has seen a major decrease of 12% to $127 billion in market capitalization in just a day of trading. In contrast, this token became the most trending coin of November after surging 344% in a month, outperforming Bitcoin (BTC) by just 44% in the same period.
According to CoinMarketCap data on Dec. 05, at the time of writing, the token position now turned down and brought Tether’s USDT back to the third rank with a market cap of $135 billion.
The decrease in market cap was mainly due to the corrections of the token itself, which shrunk to double-digit from $2.57 to $2.25. The volume of trading also recorded a decrease of up to 46% to $23.28 billion.
Ripple’s community had to believe that the token performance would surpass the new all-time high at $3.84, but crypto.news has predicted that it would crash very soon.
3 reasons why XRP’s price is predicted to crash
First, the potential pullback has been seen when the trades are above their short- and long-term moving average, which indicates that the price would return to its average price.
Second, the two technical indicators of the token, the Relative Strength Index and Stochastic Oscillator, indicate it is located in an overbought position, signalling the potential weakness.
Third, the outdemand outpaces supply, which may show that the token is in a markup position.
