Important points
- XRP, the fifth largest cryptocurrency by market capitalization, is down 3.5% today and is trading around $2.55.
- The downtrend in XRP is due to a failed breakout attempt above the $2.67 resistance zone.
- Despite the downtrend, XRP trading volume surged significantly, showing a 7% increase compared to the past 24 hours.
- Macroeconomic factors such as the US government shutdown and lower probability of a Fed rate cut in December are some of the major factors causing the downtrend in XRP.
XRP, the native cryptocurrency of the Ledger and the fifth largest cryptocurrency by market capitalization, is down 3.5% today, continuing its long-term downward momentum. According to the latest market data, the ongoing downtrend in XRP is due to a failed breakout attempt to trade above the $2.67 resistance zone, which caused selling pressure and increased profit-taking. XRP fell from $2.63 to $2.59 after the failed breakout, with trading volume surging significantly to approximately 392.6 million tokens. Experts urged traders to keep an eye on the support level at $2.58, as a break below this particular level could signal further downside. According to experts, a successful rebound above the XRP support level could lead to the digital asset retesting $2.67 and achieving higher levels in the short term.
of technical analysis And research firm EtherNasyonaL posted on X that if a resistance level is tested three or more times and the price continues to accumulate above the key support, then the resistance is destined to break sooner or later. They said each test weakens the seller’s defenses. They noted that supply would be absorbed, liquidity would be diluted and the market would be under pressure. On the other hand, steady accumulation above strong support suggests that buyers are quietly taking control and energy is being stored for an explosive move, it added. They concluded that it is no longer a question of if a breakout will occur, but when.
Despite today’s short-term bearish momentum, XRP is still 6.36% higher than last week. Overall market momentum is mixed, with short-term momentum being bearish while long-term momentum is bullish. The latest on-chain data shows that a large number of XRP holders are offloading large amounts of funds and locking in short-term profits.
Why is the price of XRP falling today?
The continued price decline or downward trend of XRP is due to several complex factors. XRP recently failed in its breakout attempt above the key resistance level around $2.67, but this price rejection is one of the main reasons for the active downtrend. The price rejection triggered a profit-taking trend among traders, increasing selling pressure on XRP. Increased selling pressure has led to massive XRP offloading by large XRP holders.
The outlook for the broader crypto market is bearish, with markets showing weakness since Fed Chairman Jerome took office. Chairman Powell rules out Fed rate cut in Decemberand his cautious comments on the “Sell the News” event on October 29th caused panic among investors and affected XRP along with prominent cryptocurrencies such as BTC and ETH. Jerome Powell argues that while his tone may have caused panic in the short term, the decision will be beneficial in the long term. LVRG Research analyst Nick Luck said that while the Fed’s tone scared investors in the short term, the plan to end quantitative tightening by December could actually be bullish for cryptocurrencies in the long term.
In summary, today’s downtrend in XRP was primarily driven by the failure to sustain the $2.67 resistance level, and the Fed’s decision to end its interest rate cutting program also had an impact.
Will XRP rise today and regain market momentum?
According to today’s market data, XRP price movements are influenced by a combination of bullish and bearish signals. XRP technical indicators are showing mixed momentum, and market analysts believe that a significant breakout or upward momentum is unlikely today. As XRP’s key support zone approaches its 200-day moving average and the value between $2.58 and $2.61 remains intact, this indicates strong buying momentum and the potential for the cryptocurrency price to rise as more buyers create higher demand.
According to crypto experts, a sustained rise above the psychological level of $3 is the only thing that will lead to a promising price increase for XRP. A breakout below the point does not guarantee a solid price spike. According to today’s market conditions, it is very unlikely that XRP will reach the psychological point of $3, so we will not see any significant XRP momentum in the cryptocurrency market today.
XRP It is a highly valued and considered asset in the cryptocurrency field. The fourth-largest cryptocurrency by market capitalization will show promising market momentum once the XRP Spot ETF is finalized.
Recently, a cryptocurrency analyst with the pseudonym unknownDLT commented that XRP is ultimately going to be one of the biggest opportunities for many people, not just in their lifetime, but in the years to come.
