XRP price falls under $2 after one 7-year-old wallet triggers a massive $721 million sell-off
XRP dropped below $2, driven by a $721 million sell-off from a long-term wallet amidst market deleveraging and liquidity drains.Summary
XRP's price declined below $2, reaching levels last seen in April, despite recent positive regulatory milestones for Ripple and ecosystem expansion, such as support for its stablecoin on Ethereum L2s and wXRP launching on other chains. This negative performance contrasts sharply with 22 consecutive days of net buying in US-listed spot XRP ETFs, which accumulated over $1 billion. The price drop is attributed to three main factors: aggressive profit-taking by long-term holders, a systemic drop in leverage in the derivatives market, and a deep contraction in liquidity across altcoins. Specifically, a seven-year-old wallet realized over $721.5 million in gains on December 11th near the $2.00 level, reinforcing resistance. Furthermore, XRP's Estimated Leverage Ratio on Binance has fallen significantly, indicating deleveraging, while Taker Buy Volume in XRP futures has collapsed by over 95% since July, showing a severe fade in active buying interest as liquidity concentrates in Bitcoin.
(Source：CryptoSlate)