Why has the price of XRP just experienced its biggest drop in a month?
XRP, the fourth most important player in the cryptocurrency industry, fell to $2.0340, its lowest level since November 23. It has now plummeted 45% from its highest level this year.
The main reason for XRP's price drop is that confidence in the sector has worsened in recent days. This decline explains why Bitcoin (BTC) and most altcoins fell today.
Data compiled by CoinMarketCap shows that the cryptocurrency fear and greed index remains in the fear zone at 20. In most cases, cryptocurrency prices remain on the edge when market participants feel fear.
The price of XRP also fell, while liquidations increased slightly. Data collected by CoinGlass shows that bullish liquidations reached $16 million, well above the $2.27 million from the previous day.
This liquidation, although high, was much lower than that of other cryptocurrencies like Bitcoin, Ethereum, and Zcash.
Technical factors also explain the drop in XRP's price. As shown in the chart below, the coin has formed a descending channel pattern and has remained below the 50 and 200-day exponential moving averages.
These two averages formed a death cross on November 6, when the 50-day moving average fell below the 200-day moving average.
Most importantly, the coin has been forming a series of lower highs and lower lows in recent months, with sellers stepping in and gaining every time it tried to recover.
On the positive side, the price of XRP has numerous bullish fundamentals that could trigger a rally over time.
The most significant is the strong demand from U.S. investors, which has driven accumulated ETF inflows to over $666 million. $XRP
