XRP has taken a drive in the past few weeks since it fell from a peak of .70 cents at the end of November. Currently, the XRP price is holding around .50 cents with a low of .48 cents.
This dip comes after several bullish weeks of both Bitcoin and Ripple. In just the month of November XRP went from .23 cents to a high of .84 cents on November 24th, almost a 300% rise.
We also saw many crypto politics, partnerships, and trading affect the coin’s price.
Let’s take a look at the technical and fundamental factors influencing XRP, and what the coin will do in the future.
Emotions Trigger the Bull-run
A sudden spike on November 20th jumped the XRP price from .30 cents to a candle of .44 cents. But, it didn’t stop there. Another mark of .61 cents closed on the 23rd before it shot up the next day to .90 cents on some markets.
Technically, the price upturn was driven by FOMO. On the fear and greed index, an intense pressure to ride the bull to a peak was quickly deflated.
We’ll talk about why the bull turned bear in the fundamental analysis.
Bad News Bears
Let’s start with the cause of XRP’s leap on November 20th. News was brewing that Coinbase would support the Spark Token airdrop based on your XRP holdings in their Coinbase wallet. The news got people scrambling to buy more Ripple for fear of missing free tokens.
Consequently, the price of Ripple began its steady climb. Then after the airdrop occurred on December 12th it dipped when it went from .54 cents to .50 cents on the 13th.
Other news of the co-founder of Ripple, Jed McCaleb, selling millions of Ripple into the market from December 1st to 6th affected the dive. The XRP price fell 6% on December 6th after he sold $157.9 million worth of XRP by that morning.
Ripple Labs had also been weary of incoming crypto regulations that would involve banks infiltrating the crypto market. Discussions of leaving the country if regulations proceeded also added to the negativity surrounding XRP.
As 2020 comes to a close, how will the crypto market—particularly XRP—hold up? For now, it looks like XRP will continue a slow decrease to .45 cents. However, it could hold above .40 cents at least until the new year shows us new possibilities.