The cryptocurrency market is once again in a dire state, with bitcoin dumping from over $81,000 a week ago to a multi-month low of under $73,000 yesterday. Today’s rebound attempt has seen little success.
While essentially all major assets are down since their explosive rallies after the midterm elections last Wednesday, Ripple’s cross-border token has taken the correction harder than most.
Why So?
Current data from CoinMarketCap shows that BTC’s weekly declines stand at just over 5%, while ETH has tanked by nearly 10%. SOL is down by a similar percentage to ETH, while HYPE has plummeted by 14.6%. Ripple’s XRP, though, has shed 17% of its value, dropping to $1.06 as of press time. Moreover, the asset slumped to $1.03 yesterday, which brought its losses to over 23% at one point. XRP has lost the fifth position in terms of market cap to USDC as a result.
Popular crypto analyst EGRAG CRYPTO flagged this underperformance by XRP and outlined why he believes the token has fallen much harder than most larger-cap digital assets. He attributed 20% of the blame to OG wallets disposing of their holdings, commenting, “early holders potentially taking profits and rotating into other coins.”
30% of the blame went to leverage flush: “Long liquidations and weak buying demand accelerating the crash.” The remaining 50% was attributed to market manipulation, though. EGRAG argued that major players are deliberately hunting liquidity at lower levels to “shake out weak hands.”
He admitted that these are his personal estimates, and outlined $1.00-$1.04 as the critical stabilization zone that XRP has to maintain to potentially reverse its trajectory. If it does, then he predicted a surge to the $1.15-$1.25 cluster, which XRP must reclaim to stage a more notable recovery.
XRP ETFs Bleed
CryptoPotato reported on Monday morning that the spot XRP ETFs basically turned into a ghost town during the previous business week, with demand disappearing in four out of the five trading days. The landscape worsened on November 9 and 10 as investors started pulling funds out of the ETFs.
Monday was particularly painful, with $10.42 million leaving the financial vehicle; the most since May 9. Tuesday saw another $7.62 million in net outflows, bringing the total to over $18 million in just two days. The cumulative net inflows have dropped from ATH levels of $1.81 billion to $1.79 billion.
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