The broader cryptocurrency market has experienced a significant downturn, with Bitcoin dropping from above $81,000 to under $73,000 and struggling to mount a successful rebound. While major digital assets have declined following post-midterm election rallies, Ripple's XRP token has experienced a sharper correction than most.
Data indicates that Bitcoin's weekly declines stand at just over 5%, while Ether and Solana have fallen by nearly 10%. In contrast, XRP shed 17% of its value to trade at $1.06, after slumping as low as $1.03 and briefly losing its fifth position by market capitalization to USDC.
Crypto analyst EGRAG CRYPTO highlighted XRP's underperformance and provided a personal breakdown of the factors behind the drop. The analyst attributed 20% of the decline to original wallets disposing of holdings as early holders take profits and rotate into other coins. Another 30% was blamed on a leverage flush involving long liquidations and weak buying demand. The remaining 50% was attributed to market manipulation by major players deliberately hunting liquidity at lower levels to shake out weak hands.
EGRAG identified the $1.00 to $1.04 range as a critical stabilization zone that XRP must maintain to potentially reverse its trajectory toward a $1.15 to $1.25 cluster.
Simultaneously, spot XRP exchange-traded funds experienced mounting outflows. Following a period of low demand, investors pulled funds on November 9 and 10. Monday saw $10.42 million leave the financial vehicle, followed by another $7.62 million in net outflows on Tuesday, reducing cumulative net inflows to $1.79 billion.
