Crypto

Ripple (XRP) Price Tanks 17% in 2 Days: Is the Top in For This Cycle?

byOlivia Chandler

December 5, 2024

2 minute read

TL:DR;

XRP was the top performer for weeks after Gensler’s announcement about his SEC departure but has calmed and retraced hard in the past few days.
As such, many analysts have cautioned that the asset might have already topped out during this cycle and warned traders to be wary about longing it.

XRP’s Rally and Stagnation

The so-called ‘Trump Pump’ pushed the entire crypto market north. Even though XRP was slightly sluggish at first, it eventually joined the pack and outperformed it on several occasions. On a monthly scale, Ripple’s native token exploded by over 420% at one point, surging to nearly $3.

This multi-year high came earlier this week, helping XRP surpass SOL, BNB, and USDT to become the third-largest cryptocurrency by market cap.

However, this is where things started to go sour. Much of XRP’s volume and demand had come from a massive demand from South Korea before the country’s political leaders suddenly announced a brief implementation of martial law.

Although the entire crypto market slumped after the news broke, XRP was harmed the most and failed to recover in the following days, unlike BTC and many other alts. The cross-border token lost its third spot in the charts to Tether and has underperformed in the past 24 hours, even though Trump named a pro-crypto SEC Chair to replace Ripple’s nemesis, Gary Gensler.

Brad Garlinghouse, Ripple’s chief executive, was quick to praise Paul Atkins as the right choice for SEC leadership, as he will “bring common sense back to the agency.”

An outstanding choice – Paul Atkins at the helm of the SEC will bring common sense back to the agency. Along with Hester Peirce and Mark Uyeda, it’s time to swiftly and definitively end the prohibition era on crypto, restoring freedom of choice, economic growth, and innovation. https://t.co/w8Rqrnubyj

— Brad Garlinghouse (@bgarlinghouse) December 4, 2024

Topped Out?

With XRP’s price correcting by nearly 20% since its local peak this week, many analysts have warned that the asset might have already topped out during this cycle. Crypto’s Batman indicated that the token was rejected at its 5-year bearish trendline and cautioned leveraged traders to be wary before opening long positions.

$XRP might be topping out, facing rejection at its 5-year bearish trendline. Although in this market you never know. Be cautious with any longs. pic.twitter.com/45TkecbyFl

— BATMAN (@CryptosBatman) December 5, 2024

Nebraskangooner also shared a similar statement but based his views on a recent tweet by Ripple’s CEO, which the analyst jokingly said might have predicted the top.