Ripple’s XRP went down by 5% on Dec.3, a sharp reversal after its recent rally where it flipped Tether and regained third position by market cap. The decline follows profit-taking by investors, with over $4 billion in realized profits over the past three days. The sell-off was also triggered by political news from South Korea, where President Yoon declared martial law.
XRP Network Realized Profit & Loss. Source: SantimentSouth Korean Exchanges Halt Trading
In South Korea, XRP is particularly popular, with a large number of investors holding the token. As of December 4, 2024, the total number of XRP holders has reached approximately 5.56 million.
Total amount of XRP holders reached 5.56 million. Source: SantimentTwo major South Korean exchanges, Upbit and Bithumb, briefly halted trading during the panic. On these platforms, the token’s price fell to $1.89, much lower than the $2.40 it was trading at on global exchanges earlier in the day. The trading pause added to the selling pressure, further pulling the price down.
Despite the drop, XRP’s trading hit $44.5 billion in the past 24 hours. This makes it the third most traded cryptocurrency after Bitcoin and Tether. Large investors, often called “whales,” have started buying the token during this dip. Some analysts believe this whale activity could help the token recover soon.
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Shill Sharing Old Court Ruling Just to Create Hype
Amid XRP’s ongoing correction, some influencers and community members have been circulating old and misleading information to pump enthusiasm. A shill shared a screenshot of an October 2023 court order, where Judge Analisa Torres ruled in favor of XRP’s usage by U.S. banks and financial institutions.
The document is legitimate but outdated. The shill reshared it as if it just happened, likely to create hype and push token’s price higher.
Will XRP Recover?
XRP is currently trading at $2.6 and the rally has taken it to a critical area near $2.60. This price level appears to act as a resistance zone, where the token struggles to move higher as selling pressure increases. If XRP can break through this level convincingly, it may target further gains, potentially heading toward $3, which would mark a psychological resistance point.
XRP/USD Daily Price Chart. Source: TradingViewOn the downside, $2.40 serves as the nearest support level. If the price falls below this level, it could trigger further declines, with the next key support near $2.00. Maintaining support above $2.40 will be crucial for sustaining the bullish momentum.
According to Coinglass, XRP saw $86 million in liquidations in the last 24 hours, with long positions accounting for $41.74 million and shorts totaling $44.91 million. Market sentiment remains mixed. Whale activity and inflows into Ripple-focused investment products—totaling $95 million in the past week—suggest long-term bullish sentiment.
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