XRP Falls 13% as Bitcoin Hits Record $103K

XRP Experiences Decline as Bitcoin Hits Record High

On December 5, XRP saw a 13% drop, falling to $2.30, while Bitcoin reached a new all-time high of $103,000. This came after XRP’s December 3 peak of $2.90, resulting in a 25% loss over two days. XRP’s market cap fell by 8%, causing it to lose its position as the third-largest cryptocurrency to Tether (USDt).

XRP’s Bullish Momentum Faces Reversal

XRP had been outperforming Bitcoin between November 1 and December 3, with a 354% increase compared to Bitcoin’s 45.5% rise. However, with Bitcoin’s surge past $100,000, XRP’s BTC ratio fell to 0.00002334, reversing its earlier gains and shifting investor attention away from XRP.

Liquidations and Open Interest Drop Create Additional Selling Pressure

The price drop was exacerbated by the liquidation of $12.8 million in long XRP positions, which added more pressure to the asset. XRP’s open interest (OI) also decreased to $4.3 billion, a marked decline from $722 million in November, indicating that traders are becoming more cautious amid increased volatility.

Technical Pattern Indicates Potential for Upside

Although XRP has faced a significant decline, technical analysis points to a possible recovery. A bull flag pattern has formed on the four-hour chart, suggesting that the asset could continue its upward trend if it breaks through the $2.37 resistance level. A potential target of $4.83 could represent a new all-time high for XRP.

Key Support Levels to Watch for XRP

XRP’s RSI has dropped from 82 to 52, indicating weakening momentum. If XRP fails to maintain support at $2.37, it may test further support levels at $2.05 or $1.68. The success of these levels will determine whether XRP can recover or if the bearish trend will continue.