Coin Edition -
- XRP’s unexpected dip raises concerns amid Bitcoin’s surge, highlighting a deviation from typical price patterns
- Institutional support wanes as Solana outpaces Ripple in ETP inflows, affecting XRP’s growth and stability
- Technical indicators suggest a potential downward trend for XRP, with RSI and MACD signaling caution among investors
Despite early bullish trends, XRP experienced a notable dip, reaching a low of $0.608 during Tuesday’s intra-day trading. This downward movement occurred unexpectedly, particularly in light of Bitcoin’s surge past the $42,000 mark. Analysts note that Ripple’s XRP, typically moving in tandem with Bitcoin, deviated from this pattern, sparking concerns among investors.
I was feeling some exasperation when I did this post but the overriding thing I experienced was curiosity. The fall happened across many Altcoins at the same time and Bitcoin also fell. Although we know the market seems to move together I am always surprised when these moves by… https://t.co/jZQL3rrJrv— bill morgan (@Belisarius2020) December 4, 2023
The core of Ripple’s current challenge lies in its diminished appeal to institutional investors. While Ripple has long been a favorite within the crypto community, its growth and stability increasingly depend on institutional support. This week’s data reveals a stark contrast with Ripple registering $0.5 million in exchange-traded product (ETP) inflows, significantly trailing behind Solana’s $4.3 million.
Annual comparisons highlight this disparity, with Ripple’s inflows overtaken by Solana’s $143 million. Furthermore, due to the price surge, most investors have switched their attention to Bitcoin and Ethereum. As a result of the increased outflow and liquidation, prices plummeted.
Ripple’s Market Response
Following the dip, Ripple’s price showed signs of recovery, aiming to breach the resistance level of $0.644. However, the price remained volatile, hovering around $0.620908, a slight decrease from the previous day. The current market conditions, influenced by institutional disinterest and the broader altcoin market dynamics, present a challenging environment for Ripple.
XRP/USD 24-hour price chart (source: CoinStats)
Despite a 3.18% drop in XRP market capitalization to $33,062,868,537, 24-hour trading volume increased by 44.25% to $1,882,201,363, indicating sustained interest and activity in the XRP market. Adding to the wariness, a whale transaction involving 24 million XRP tokens, valued at $14.88 million, was reported.