Why is XRP price down today?
XRP (XRP) price is down 4.5% over the past 24 hours, and has underperformed most of the top-10 largest market capitalization cryptocurrencies over the past week.
XRP Weekly Chart. Source: Cointelegraph/TradingView
For the first time since June 2024, an altcoin closed three consecutive bullish candles on the weekly chart, raising the possibility of retesting the psychological level at $2.
XRP's funding rate will be negative.
Cointelegraph recently reported that XRP open interest has fallen by more than 54% in three weeks, with more than $2 billion of positions closed. Since then, the futures market has not improved significantly, and currently, a slight increase in open interest is followed by a negative funding rate.
XRP Consolidated Funding Rate and Open Interest Chart. Source: Velo.data
Negative funding showed that many traders are currently interested in short positions, with open interest increasing by $77 million over the previous day.
Meanwhile, data from CryptoQuant indicates that XRP stocks on the Binance exchange remained flat last week after seeing an increase in selling pressure between December 14 and December 28. Portfolios, where markets expect lower prices, due to another dividend hike.
XRP reserves on the Binance exchange. Source: CryptoQuant
Prices are on the main trend, which is now moving towards a bearish sentiment, as the vacancy rate decreased during the last holiday season.
Related: XRP price warning signs emerge after 300% gain in two months
XRP Price Action “Incredibly Weak”
From a technical perspective, XRP is currently breaking out of the symmetrical triangle pattern on the 1-day chart, which could drag the altcoin to the lowest liquidity zone between $1.80 and $1.95.
XRP 4-Hour Chart. Source: Cointelegraph/TradingView
On the 4-hour chart, the altcoin closed below the 200-day EMA level for the second time since November 6. On December 20, it closed below the indicator, but a quick recovery was found. However, this time it is a little less.
Dom, an independent crypto analyst, also noted that XRP's price action looks “incredibly weak,” and the altcoin is likely looking to move lower in the charts.
Analysis of XRP by Dom. Source: X.com
In an analysis of time-price opportunities, the trader saw XRP break below $2.15, undercutting the lows of the value area where the last key support was seen. Prices are currently at the $2.07 mark, where there is a lack of liquidity, XRP can go down to $1.90, there is a weak liquidity zone, as indicated earlier on the chart. The businessman added:
“I was wrong, but I'm ready to go down another leg with BTC.
Related: BTC Price ‘Split Confirmed?' 5 things to know in Bitcoin this week
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
