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Why Is XRP Going Down? Price Experiences Steepest Decline in Two Months

Author: Content Editor
The price of XRP has fallen sharply due to massive liquidations and profit-taking following its November rally. The token is facing bearish sentiment in derivatives markets, while Bitcoin and Ethereum are attracting more investor attention. XRP has dropped 9% to intraday lows of $2.36, marking the steepest drop in over two months. The cryptocurrency market is showing a divergence as XRP experiences significant selling pressure, leading to a shrinking market capitalization. The drop is also fueled by long liquidations totaling $358 million in the last 24 hours. XRP has fallen below Tether (USDT) on the list of largest tokens. The market structure presents concerning signals for XRP holders, although the long-term outlook remains bullish, with a projected rise towards $5 based on technical patterns. However, in the short term, the funding rate is negative, reflecting strong bearish sentiment in derivatives markets. Market focus and capital flows have shifted back to Bitcoin, leading to a decline in demand for altcoins like XRP. Ongoing regulatory uncertainties also impact XRP's market performance, despite the nomination of a pro-crypto SEC chair candidate. Despite the current decline, XRP's long-term outlook remains bullish, but it is a speculative asset with high risks and rewards. Careful consideration is needed due to regulatory uncertainties and market volatility.

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