Home Altcoins News XRP Hits Record Weekly High But Faces Market Correction

XRP Hits Record Weekly High But Faces Market Correction

XRP Price

XRP, the cryptocurrency associated with Ripple, recently achieved a milestone by recording its highest weekly candle ever at $2.95 on the Binance exchange. However, despite this significant achievement, the token has since faced a correction, dipping below the psychologically crucial $3 mark and raising concerns among investors.

After briefly reaching $2.95, XRP experienced a sharp decline of roughly 14% on Sunday, falling to an intraday low of $2.80. As of now, the token has recovered some of its losses and is trading around $3.10, following the broader trend of the cryptocurrency market, which has seen Bitcoin bounce back above $105,000 after a brief dip below $100,000.

XRP’s Record-Breaking Week

The recent surge in XRP’s price marked a notable achievement for the cryptocurrency, which saw a record high of $3.40 on the Bitstamp exchange. This was the highest level for the token in nearly seven years, giving hope to investors who have long awaited a return to bullish trends for XRP.

Despite this impressive price action, the excitement was short-lived, with XRP’s failure to hold the $3 level fueling fears of a potential reversal. In the face of market volatility, XRP has struggled to maintain its upward momentum, which has left many wondering whether this rally could prove to be short-lived.

Market Sentiment Turns Bearish

According to data from cryptocurrency analytics platform Market Prophit, investor sentiment surrounding XRP has turned bearish. Social media mentions and discussions about the token have shifted towards more negative sentiments, which suggests that the market’s mood has dampened in recent days.

Additionally, “smart money” investors – typically institutional or more experienced market participants – have been betting against XRP, indicating that professional traders may be anticipating further price declines. This shift in sentiment could signal that the token’s bullish momentum is running out of steam.

XRP Liquidations and Declining Futures Interest

The correction has also been evident in the futures market, where a significant amount of XRP positions were liquidated over the past 24 hours. According to CoinGlass, $32.5 million worth of XRP contracts were liquidated, with 84% of the liquidations coming from long positions. Nearly $10 million of these liquidations occurred on the Binance exchange alone, a reminder of the volatility that cryptocurrencies are known for.

The overall open interest for XRP futures stands at $6.69 billion, showing an 11% decline compared to the previous day. This drop in open interest could signal that market participants are pulling back, possibly in response to the recent correction and the bearish sentiment developing around the token.

XRP’s Role in the ETF Buzz

Despite the recent volatility, XRP is still gaining attention, particularly in relation to the growing excitement around exchange-traded funds (ETFs). ProShares, one of the leading issuers of ETFs, recently filed for leveraged, inverse, and futures-based XRP ETFs, which has fueled speculation about XRP’s continued relevance in the broader financial ecosystem.

The anticipation surrounding these ETFs could help bring further institutional interest into the market, potentially lifting XRP’s price if the ETF products are approved. If this happens, XRP could see renewed bullish momentum, especially if the growing demand for cryptocurrencies continues.

What’s Next for XRP?

While XRP has made significant strides over the past week, the recent price correction and the bearish market sentiment suggest that investors should proceed with caution. Despite the potential long-term benefits of XRP’s involvement in the ETF space and its growing recognition in the financial markets, short-term volatility could continue to weigh on the token’s performance.

If XRP manages to hold the $3 level and break through further resistance, it could continue its upward trajectory. However, if the bearish sentiment persists, there could be more downside potential, and the token may test lower support levels.

As always, market conditions are fluid, and investors should be prepared for both bullish and bearish scenarios as XRP continues to play a central role in the rapidly evolving cryptocurrency landscape.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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