Why is XRP price down today?
A recent pump-and-dump in the XRP market was triggered by rumors about a BlackRock ETF, leading to a surge followed by potential correction risks. The rumor suggested that BlackRock, a major asset manager, was planning an exchange-traded fund (ETF) related to XRP. This caused a significant price increase for XRP, but analysts warn that the market could face a correction of around 20% in the coming weeks. Pump-and-dump schemes involve artificially inflating the price of an asset through positive rumors or other means, followed by a rapid sell-off to capitalize on the inflated prices. Investors are advised to exercise caution and conduct thorough research to navigate such volatile situations in the cryptocurrency market.
XRP is currently experiencing a decline, with its price at around $0.60, marking a nearly 9.5% decrease for the week and a 7.5% drop in the last 24 hours. This underperformance compared to the broader crypto market, which only saw a 2.5% decrease, can be attributed to various factors. Firstly, a rumor about a BlackRock exchange-traded product (ETF) centered around XRP on November 13 led to a 12% spike in XRP's price, only to be debunked later, resulting in a rapid collapse and significant liquidations, especially impacting long positions. The aftermath of this event has contributed to XRP's downward trajectory throughout the week. Additionally, the holdings of XRP's richest addresses have seen modest drops, and technical factors, including a correction after testing a historical resistance trendline near $0.75, are influencing its price decline. Despite the current correction, XRP's overall uptrend may resume, with potential support around $0.50, coinciding with the 50-week and 200-week exponential moving averages.