XRP Price Experiences Significant Decline Amidst Mixed Market Sentiments
In the past 24 hours, the price of XRP has plummeted over 5%, leading to a drastic reduction in its market capitalization by $10 billion. This decline is attributed to both technical weaknesses and uncertain ETF sentiments, which have negatively impacted the token.
XRP Price Drop and Market Performance
The price of XRP fell to $2.84, breaking through the $3.05 support level and slipping below the crucial $3 psychological barrier. This downturn caused XRP’s market cap to shrink from $179.82 billion to $169.72 billion, significantly underperforming compared to the broader cryptocurrency market’s 3.35% dip during the same timeframe.
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Technical Indicators Highlight Bearish Trends
Technical analysis underscores the bearish sentiment surrounding XRP. The Moving Average Convergence Divergence (MACD) histogram registered a reading of –0.0146, while the Relative Strength Index (RSI) dropped to 46.58, indicating a downward trend. This market breakdown also resulted in $113 million in long liquidations, as reported by CoinMarketCap’s community data.
Key Fibonacci Retracement Levels
At $2.88, XRP encounters a critical Fibonacci retracement level (78.6%). A continued downward movement past $2.75, identified as the swing low, could potentially lead to a more significant correction.
Insights from a Crypto Trading Expert
Amidst this market turbulence, on-chain analyst Ali Martinez provided his insights into the situation. On August 25, Martinez predicted on X that XRP could return to $3.70; however, he acknowledged the current trend might favor a descent to $2.70, especially with the token already trading below $3 at that time.
By August 28, Martinez aligned his predictions with the ongoing market momentum, indicating that “XRP continues to retrace toward $2.83 as anticipated,” reflecting the prevailing bearish sentiment as the price approached that level.
Market Sentiment and Potential ETF Approval
The recent decline follows a week characterized by mixed feelings regarding the approval of a potential XRP spot ETF. Although the open interest in CME XRP futures recently surpassed $1 billion at an unprecedented pace, the overall market optimism has been dampened by general market weakness and uncertainties regarding regulatory decisions.
In conclusion, XRP’s recent price crash highlights the impact of technical factors and broader market sentiments on cryptocurrency valuations. As investors await regulatory clarity and market stabilization, the token’s future price movements remain uncertain.
