As buying pressure decreases, XRP wipes $800 million from its market cap in a single day
XRP has experienced a consistent uptrend in recent weeks despite the cryptocurrency market as a whole being in a bearish state.
Notably, the asset has benefited from the ongoing dispute between the Securities Exchange Commission and its parent company Ripple (SEC).
The token is now under persistent selling pressure and has lost about $790 million in market capitalization in just one day.
According to data from CoinMarketCap, as of November 28, XRP's market cap is currently $19.29 billion.
The asset's price has corrected by almost 5% to trade at $0.38 as of press time, reflecting the selling pressure.
XRP has seen gains of nearly 9%, according to the weekly chart, despite the recent short-term losses.
Although the current market environment can be blamed for XRP's declining valuation, there is also a chance that investors are also cashing in on the asset's recent rally.
Notably, the correction has dashed the XRP community's hopes that the asset will again reach the $0.50 level with an eye toward $1.
It is also important to remember that the $0.38 level has served as a crucial resistance area and that breaking through it might trigger a price correction.
Overall, the token will likely correct to $0.35 if the bears gain more control over XRP.
The technical analysis of XRP is bearish despite the ongoing pressure; a summary of the daily gauges on TradingView indicates a "sell" at 14, while moving averages show a "strong sell" at 12. Oscillators are "neutral" at eight in other places.
The ongoing SEC case will support XRP as it and the overall crypto market work to recover from the collapse of the FTX crypto exchange.
When Ripple achieves minor victories, in this case, XRP typically experiences a price increase in recent months.
It's also believed that both parties will try to reach a resolution as the case draws close. If Ripple wins, XRP will surge and impact the market.
The asset in this line has recently seen an increase in social activity, and the neighborhood is still optimistic about its prospects.
By the end of 2022, the CoinMarketCap community predicts that the price of XRP will be $0.42.
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