The recent crypto market crash has sent altcoins to bloodbath, and ripple’s XRP is no exception. XRP’s price has fallen by double digits in the past few days, despite the recent surge following the launch of Ripple’s stablecoin, RLUSD.
The major reason for this is the Federal Reserve’s interest rate cut, and the FUD started by hawkish comments of Fed Chair Jerome Powell.
Why XRP Price Crash
While there could be numerous reasons for the XRP price to drop, some of the most thought-out by industry experts are:
1. Market-Wide Correction:
The overall cryptocurrency market has seen a sell-off due to the Fed’s rate cut, which has negatively impacted XRP and other digital assets.
2. “Sell-the-News” Event:
XRP’s price had rallied in anticipation of the RLUSD launch. However, after the launch, some investors might have taken profits, leading to a price correction.
3. Uncertainty Regarding XRP ETF:
The potential approval of an XRP ETF in the US remains uncertain, with some experts suggesting that other cryptocurrencies like Litecoin and Hedera might be prioritized. This uncertainty could be weighing on XRP’s price.
XRP, like many other cryptocurrencies, has suffered from market losses. It
The Federal Reserve’s statement that it would reduce its anticipated rate cuts for 2025, which had contributed to the earlier euphoria in risk markets, including cryptocurrency, coinciding with the recent drop
What Crypto Experts Say
Ryan Selkis, the founder of Messari, didn’t hold back to criticize the current status of XRP. He joked that since the asset’s value has fallen below the total value of significant firms like Coinbase, MicroStrategy, and Softbank, now could be the best moment to purchase.
He had already criticized the XRP community, calling them “worthless bot groups,” now itestifying his hatred towards the cryptocurrency.
JackTheRippler, an XRP advocate, is meanwhile thanking everyone who sold XRP because it is their actions that help guys like him turn XRP whales.
XRP Price Analysis
As of now, XRP is trading around $2.16, reflecting a drop of 10% in the last 24 hours. Despite this decline, the price seems to have found strong support just below its current level, giving some hope to traders.
For a few weeks, XRP has been rising nearly vertically in the USDT pair. However, since the RSI showed a pronounced overbought signal, the market has been unable to maintain its upward trend and is currently cooling down and stabilizing.
However, after being tested earlier today, the $2 support level is still in place and has the potential to drive the price upward into the $3 level once more. However, a more significant decline toward the $1.4 level would be anticipated if the $2 level were to be decisively broken.
Also Read : XRP Withdrawals Delayed on Bithumb due to Unprecedented Demand
