Key Insights
- XRP price slipped more than 2%, suggesting that ETF optimism failed to lift market sentiment.
- An analyst noted that the long-term holders are now in denial, which might have triggered the selling pressure.
- Ripple coin risks falling to $1.7 if it fails to reclaim a key support level ahead.
The latest XRP ETF launch has captured the attention of crypto market participants. However, looking at the price action, it appears to have failed in boosting market optimism.
XRP price has continued its downward trajectory over the past few weeks, falling to as low as $2.10 amid a broader crypto market selloff.
The latest dip in the Ripple coin could also be attributed to the broader crypto market selloff. For context, Bitcoin price slipped below the brief support $90,000 on November 18, causing panic among traders.
This, in turn, has also triggered a massive selling pressure for the altcoins. It suggests that the market participants are treading cautiously while putting their bets on the digital assets.
Amid this, a renowned analyst said that the long-term holders for Ripple coin are now in “denial,” indicating a waning interest.
Besides, he also noted that the crypto now risks falling below the $2 support, which has further spooked market participants.
XRP Price Dips Despite Ripple ETF Optimism
XRP price has continued to stay in the red today, losing more than 2% over the last 24 hours, and is resting at $2.13. The trading volume of the asset was also down 37% to $4.64 billion, reflecting a declining interest of traders.
Notably, the crypto has moved between the $2.24 and $2.13 region from yesterday, falling from its one-month high of $2.69. The weekly chart of Ripple coin price shows a slump of over 12%, while the monthly chart also shows a similar plunge of 13%.
However, the XRP Futures Open Interest stayed near the flatline. This derivatives data suggests a mixed sentiment among traders, which might drive the price in any direction in the near future.
Meanwhile, it’s worth noting that the latest dip comes despite the soaring optimism after the latest XRP ETF approval. The investment instrument was one of the most successful launches among all the ETFs launched this year.
Analyst Predicts Ripple Price Dip Below $2
The latest dip in XRP price has spooked traders over a potential dip below the $2 support. Amid this, analyst Ali Martinez notes that long-term holders have shifted from euphoria to denial, and now anxiety is setting in.
This suggests that the long-term holders are dumping their Ripple coin holdings, which might have worsened the selling pressure in the market. In addition, he has also shared bearish targets for XRP price if it fails to hold a key support level.
In a separate post, Martinez said that $2.15 marks a key support level for the asset that must be reclaimed. Besides, he noted that if the support fails, the crypto could find the next support at $1.91 or $1.73.
Having said that, investors are keeping close track of the $2.15 level now. As a potential dip to $1.73 looming, investors are also grappling with anxiety over a potential drop in the near future.
On the other hand, the continuing dip in Bitcoin price and the broader digital assets space have further fueled concerns.
So, investors should exercise caution while trading in the ongoing volatile scenario in the market.