Panic in the Crypto Market Rises After Massive Bitcoin Dip, XRP and Monero Hold Key Levels

The crypto market has suffered a shock price crash, with Bitcoin dipping by 5.7% to start December. Panic has begun to spread across the crypto market of a possible bear market, as there was no major bearish catalyst for the dip that has wiped out $700+ million in liquidations. 

Despite the steep decline in the market, Monero has continued to hold strong, maintaining gains of 10% on the 1W chart. On the flip side, the price of XRP is down by 7%, but has still managed to hold above the $2 support level. In addition, the XRP exchange supply has dropped by 45% over the last 60 days with an uptick in whale wallets, suggesting that the altcoin price could increase. 

XRP Plunges, But Holds Above $7 As On-chain Metrics Suggest Rebound

As the crypto market plunged to start the new week, the price of XRP has dropped by 7.4% in the last 24 hours. As a result of the decline, $16.76 million in XRP positions have been liquidated in the last 24 hours. 

While the market is in a state of panic, XRP bulls defending the $2 support level correlates with the larger bullish trend. According to data from Sosovalue, XRP spot ETF inflows have reached $666.61 million, led by the recent listing of 21Shares’ new TOXR.

In addition to the steady inflow into XRP investment products, the XRP exchange supply has dropped by 45% over the last 60 days, showing large-scale accumulation. Also, whales have been stockpiling XRP, adding more than 150 million XRP tokens to their bags since November 25.

These metrics are often accompanied by a major price increase. The analyst, Crypto0637 has explained that the 5D XRP price chart has formed the same structure as it did in the 2017 bull market. With this, the analysts suggest a potential rally above $150 by 2026.

Monero Holds Gains Despite Market Plunge

While the price of Bitcoin and the rest of the market suffer a major price dip today, Monero (XMR) has continued to rise. XMR is the only crypto in the top 20 coins by market cap in the green today. XMR is up by 1.5% to push its weekly gains to over 10%.

The Monero price now trades around $419, as XMR looks to target its highest yearly close since May 2021. The recent XMR price pump has been led by a resurgence in privacy-focused coins and a shift in capital from Zcash. 

With the rekindled interest in privacy-focused coins, XMR futures Open Interest has surged to $70 million, according to Coinglass. The Coinglass data shows an increase in OI and bullish bets over the last few weeks as the price of XMR has increased. 

With the inflow of capital and building momentum, Monero could be gearing up for a potentially huge bull run. According to VouriTrading’s prediction, the price of XMR could pump above $2,000 (a potential new ATH) when it breaks out of the accumulation zone. 

In Conclusion

While the crypto market plunge has raised concerns about the potential start of the bear market, XRP and Monero still look bullish in the long term. XRP still shows strong on-metrics and accumulation that suggests a price pump, Monero’s growing OI, and bullish bets could fuel its increase.