XRP Price Plunges Over 18% in a Week as Bearish Sentiment Dominates Crypto Markets

XRP price has been in the red for the past few days against the backdrop of the global cryptocurrency market turmoil. XRP has crashed by nearly 19% over the past week and 29.50% in the month to date. Even so, the altcoin remains 52.49% higher in the year to date. The asset’s total market capitalization has crashed over the past few days to $27 billion, with the total volume of XRP traded over the last 24 hours falling by more than 24%.

Crypto Selloff

XRP price has been in a steep decline over the past few weeks after jumping to its highest level since April 2022 in July. Ripple, the cryptocurrency company behind XRP, recorded a landmark court win against the US Securities and Exchange Commission earlier in July after 3 years of struggle. The judge presiding over the case ruled that XRP was considered a security when solely sold to institutional investors. The ruling by the federal judge saw the XRP price skyrocket by nearly 80% to $0.9380. Even so, the ripple effect from the court win did not last long enough to sustain the XRP price, prompting a 39% decline since.

The cryptocurrency market has been in jitters over the past few weeks amid the decline in market sentiment and global economic uncertainty. The global cryptocurrency market cap has plunged to $1.05 trillion, while the total crypto market volume continues to increase. Last week, Bitcoin, the world’s largest cryptocurrency, posted its worst week since May, weakening the crypto market sentiment. The crypto bigwig has lost more than 11% in the past week following a report by the Wall Street Journal that Space X wrote down the value of its Bitcoin holdings and sold the cryptocurrency.

Most altcoins, including Ethereum, the largest altcoin by market cap, have been making bigger moves to the downside since then. Other altcoins such as Solana, Polygon, Cardano, Polkadot, Dogecoin, BNB, Litecoin, and Shiba Inu, among others, have shed more than 10% in value over the past week.

The Crypto Fear and Greed Index, which measures the key emotions driving the cryptocurrency market, has declined further over the same period. The current reading on the Index is 34, which means that investors are in extreme fear and are selling irrationally.

The crypto market selloff has also been intricately linked to external pressure in China. Asia has always played a big role in the cryptocurrency market, especially with Singapore and Hong Kong opening the door. However, with the global economic downturn, a bull market is unlikely.

XRP Price Technical Analysis

The daily chart shows that the XRP price has been in a steep downfall for the past few weeks, forming a descending channel shown in yellow. The digital asset has moved below the 50-day and 200-day exponential moving averages and hovers slightly below the crucial support level of $0.5290. Its Relative Strength Index (RSI) is below the signal line at 31, indicating an increase in selling pressure.

Therefore, I expect the XRP price to continue falling in the short term before an upward price reversal. The next support levels to watch will be $0.500 and $0.4545. However, a flip above the 200-day EMA at $0.5250 might give bulls some momentum to push the price higher to the 50-day EMA at $0.6020.

XRP Price Chart