XRP Faces Intense Selling Pressure Amid Global Market Turmoil
The digital currency XRP experienced significant selling pressure this week, dropping below the crucial $2 threshold. This decline was part of a broader market reaction to former President Donald Trump’s announcement of extensive global tariffs.
On April 2, XRP saw a sharp downturn, with its price falling by 5.63%. This contributed to a larger sell-off across the cryptocurrency market, which wiped out over $140 billion in value.
XRP Price Shows Signs of Recovery
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Despite the initial plunge, XRP managed to regain some ground, increasing nearly 3% intraday to reach $2.06 at the time of writing. This minor recovery aligns with early indications of market stabilization and coincides with the Senate Banking Committee moving forward with Paul Atkins’ nomination to lead the U.S. Securities and Exchange Commission (SEC).
XRP at Risk of Breakdown to $1.30
Even with a short-term recovery, analysts caution that XRP could still be susceptible to a significant downward shift. The token is exhibiting a substantial bearish signal, having breached the $2 neckline of a head-and-shoulders pattern. This pattern is typically linked with trend reversals and sharp corrections, as noted by crypto analyst Ali Martinez on April 4.
Should XRP fail to maintain its position above the $2 mark, this pattern could confirm a breakdown, with a potential downside target of $1.30. This would represent a possible 36.6% decline from its current level.
Market Sentiment and Regulatory Developments
While the progression of Paul Atkins’ nomination to the SEC could eventually lead to more favorable cryptocurrency regulations, market sentiment remains fragile. At present, there is a scarcity of strong bullish catalysts to drive a significant rebound, leaving XRP under sustained pressure with the risk of further declines ever-present.
The ongoing market volatility highlights the need for investors to remain vigilant, as changes in regulatory landscapes and market conditions can significantly influence price movements.
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