XRP at Risk of $2.05 Retest, While Bitcoin Gives Back Weekly Gains

XRP at Risk of $2.05 Retest

The Ripple-backed XRP is currently trading at around $2.08. The price pulled back by 3.98% in the past 24 hours. The market cap declined to $125.59 billion. The 24-hour trading volume went down by over 3% to touch $3.2 billion. 

The XRP failed to hold $2.15-$2.17 zone. The overall market sentiment continues to remain bearish with sustained selling pressure. The 14-day Relative Strength Index reading of 43 suggests a neutral stance with bearish bias. The XRP is trading below the 10-day Exponential Moving Average (EMA) and Simple Moving Average (SMA). If the current bearish sentiment continues, XRP is likely to retest $2.05 soon. The price corrections are attributed to several factors, such as options expiry, whale movements, and prevailing risk-off sentiment amid the macro uncertainties.

The $5.94M XRP options contracts are about to expire today, with max pain price at “$2.15”. This led the market makers to push the price lower to minimize the losses. The whales have transferred millions of XRP to wallets linked to crypto exchanges. There are even claims that Ripple itself has reportedly transferred over 46,019,328 XRP coins to Binance. The transferred XRP is worth over $101 million. The enhanced whale activity is putting pressure on the Ripple-backed digital currency. Additionally, a risk-off sentiment is dominating amid the uncertainties over the Fed rate cuts. The declining open interest further underscores the risk-averse positioning. 

However, the XRP spot Exchange Traded Fund (ETFs) have recorded a net inflow of $12.84 million yesterday, December 4. The XRP ETFs have attracted over $850 million in inflows since their debut in November, indicating the increased institutional interest. 

Bitcoin Struggles to Break Above $93k

The BTC is currently hovering around $91,052.18, after failing to break above the $93k level. The Bitcoin price has lowered by 2.26% in the past 24 hours. The overall risk-off sentiment has influenced the price trajectory. Besides, $3.4 billion options expiry with ‘max pain’ price of $91K is putting pressure on the market. Moreover, the BTC spot ETFs recorded a net outflow of 194.60 million yesterday, December 4, showing the fading institutional confidence. 

Bitcoin lost the uptrend when the BTC failed to overcome $94k level. The further dip below $93k, a key support level, led to sellers taking control. The 14-day Relative Strength Index (RSI) reading of 45 suggests a neutral position inclining towards a bearish territory. However, the MACD  histogram is showing a bullish crossover, indicating that a trend reversal can not be ruled out. 

Also Read: Bitcoin Price Prediction Today: Can BTC Hold the $90K–$94K Range Ahead of PCE Data?