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XRP wipes $800 million from its market cap in a day as buying pressure cools off

XRP wipes $800 million from its market cap in a day as buying pressure cools off

XRP has enjoyed a sustained rally in recent weeks despite the general cryptocurrency market operating in bearish conditions. Notably, the asset has received a boost from the ongoing case between its parent company Ripple and the Securities Exchange Commission (SEC). 

However, the token is now experiencing sustained selling pressure losing about $790 million in market capitalization within a day. As things stand, XRP has a market cap of $19.29 billion as of November 28, according to CoinMarketCap data. 

XRP one-day market cap chart. Source: CoinMarketCap

Indeed, the selling pressure is replicated on the asset’s price, which has corrected almost 5% to trade at $0.38 by press time. Despite the short-term losses, the weekly chart shows XRP has recorded gains of almost 9%. 

XRP price chart. Source: Finbold

XRP price analysis

Although XRP’s dropping valuation can be tied to the prevailing market condition, there is also a likelihood investors are also taking profits from the asset’s recent rally. Notably, the correction has dented hopes by the XRP community for the asset to reclaim the $0.50 level with a focus on $1. 

It is also worth noting that the $0.38 level has acted as a critical resistance zone, and breaching the area could lead to a possible price correction. Overall, if the bears exert more dominance on XRP, the token will likely correct to $0.35. 

XRP technical analysis

Amid XRP’s sustained selling pressure, the token’s technical analysis is bearish, with a summary of the daily gauges on TradingView pointing to “sell” at 14 while moving averages are for a “strong sell” at 12. Elsewhere, oscillators are” neutral” at eight. 

XRP technical analysis. Source: TradingView

At the same time, as the XRP and the general crypto market attempt to move forward from the FTX crypto exchange collapse, the token will be looking for a boost from the ongoing SEC case. In recent months, XRP has tended to record a price rally when Ripple hits minor wins in the case. 

At the same time, as the case nears a conclusion, it’s speculated that both parties will look to settle the matter. If the case favors Ripple, XRP will rally and influence the general market. 

In this line, the asset has recently recorded increased social activity, with the community remaining bullish on its prospects. As reported by Finbold, the community on CoinMarketCap is projecting that XRP will trade at $0.42 by the end of 2022.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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