TL:DR;
- XRP was the top performer for weeks after Gensler’s announcement about his departure from the SEC, but has calmed down and pulled back sharply in recent days.
- As such, many analysts have warned that the asset could have peaked during this cycle and warned traders to be careful not to long for it.
XRP Rally and Stagnation
The so-called ‘Trump Pump’ pushed the entire cryptocurrency market north. Although XRP was a bit slow at first, it eventually joined the pack and surpassed it on several occasions. On a monthly scale, Ripple’s native token skyrocketed over 420% at one point, rising to almost $3.
This multi-year high occurred earlier this week, helping XRP surpass SOL, BNB, and USDT to become the third-largest cryptocurrency by market capitalization.
However, this is where things started to get ugly. Much of the volume and demand for XRP came from massive demand from South Korea before the country’s political leaders suddenly announced a brief implementation of martial law.
Although the entire cryptocurrency market crashed after the news broke, XRP suffered the most and failed to recover in the following days, unlike BTC and many other alternatives. The cross-border token lost its third spot on the charts to Tether and has underperformed over the past 24 hours, despite Trump appointing a pro-crypto SEC chair to replace Ripple foe Gary Gensler.
Ripple CEO Brad Garlinghouse was quick to praise Paul Atkins as the right choice for SEC leadership as he will “bring common sense back to the agency.”
An exceptional choice: Paul Atkins at the head of the SEC will return common sense to the agency. Together with Hester Peirce and Mark Uyeda, it is time to quickly and definitively end the era of cryptocurrency prohibition, restoring freedom of choice, economic growth and innovation.
—Brad Garlinghouse (@bgarlinghouse) December 4, 2024
Overcome?
With the price of XRP correcting nearly 20% from its local peak this week, many analysts have warned that the asset could have peaked during this cycle. Crypto’s Batman indicated that the token was rejected at its 5-year downtrend line and warned leveraged traders to be careful before opening long positions.
$XRP could be peaking, facing rejection of its 5-year downtrend line. Although in this market you never know. Be careful with lengths. pic.twitter.com/45TkecbyFl
-Batman
(@CriptosBatman) December 5, 2024
Nebraskangooner also shared a similar statement, but based his views on a recent tweet from the Ripple CEO, which the analyst jokingly said could have predicted the top.
Brad with the timely top local tweet at $XRP pic.twitter.com/zdt7aRRTEw
-Nebraskangooner (@Nebraskangooner) December 5, 2024
Ripple (XRP) Subsequent Price Crashes 17% in 2 Days: Is It the High for This Cycle? appeared first on CryptoPotato.
