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XRP Price: Ripple Tumbles as Silvergate’s Shares Dip Amid Financial Uncertainty
XRP price has been under intense pressure for the past few weeks as concerns about US regulations and Fed interest rate hikes persist. At the time of writing, the altcoin had tilted 2.60% lower to $0.3674. Ripple has shed more than 5% over the past week but its year-to-date price remains 8.35% higher. The cryptocurrency currently ranks as the 6th most valued digital asset by market cap after USD Coin and ahead of Cardano.
Fundamentals
XRP price has been range-bound for the past few days as concerns about its lawsuit with the US Securities Exchange Commission (SEC) continue to weigh on the cryptocurrency. Ripple has been in a legal battle with the SEC for over two years. The SEC filed a complaint against Ripple Labs, claiming that XRP is a security and that the firm offered it to investors without legal registration.
Over the past months, the lawsuit’s outcome has become increasingly unpredictable, prompting traders to be cautious. Markets have been in talks concerning the regulation of all altcoins by the SEC, yielding some level of uncertainty among the altcoins. Even so, investors expect the XRP price to remain bullish in the long term.
Fears about the US Federal Reserve further hiking its interest rates have left many investors worried. According to remarks by some of the Fed officials, the Fed will have to raise its key interest rate higher than expected if the recent trend of strong job growth, consumer spending, and inflation persists. Futures traders have said that the interest rate might get to a range of 5.50%-5.75%, higher than the predicted 5.25%-5.50%.
The overall crypto market was in the red on Friday as shares of the crypto-focused bank Silvergate Capital wiped more than half of its value. The bank recently announced that it was evaluating its ability to survive as a going concern. Concerns about the bank’s health have been rising recently following the collapse of FTX which was a banking client.
The firm’s announcement saw cryptocurrencies tumble, led by the largest digital asset Bitcoin. Altcoins such as Ethereum, Tether, Polygon, Solana, Litecoin, and Polkadot, among many others, have also suffered declines. Many digital asset exchange platforms including, Coinbase and Galaxy Capital have said that they would no longer be accepting or initiating payments through Silvergate.
XRP Price Outlook
The daily chart shows that the XRP price has been under pressure for the past few days, trading in a tight range between $0.3835 and $0.3665. The altcoin has moved below the 25-day, 50-day, and 100-day moving averages. Its Relative Strength Index (RSI) has moved below the neutral zone, hinting at a decrease in buying pressure.
Therefore, putting all the fundamentals into consideration, the Ripple price is likely to inch lower in the short term as sellers eye the next support at $0.3440. A breach of the aforementioned support level could have the price pullback further to the next support level at $0.3225. However, a flip past the key resistance at $0.400 will invalidate my bearish thesis.
Bitcoin price has been relatively stable over the past few days after volatility picked up during the weekend, pushing the price lower by more than 3%. At the time of writing, the flagship cryptocurrency, Bitcoin, was trading at $26,255.55. As it continues to dominate the crypto market, ranking 1st, its total market capitalization slightly declined over the past day to $5.12 billion. Additionally, the total volume of BTC traded over the same period slumped by more than 32%.
Economic Concerns
Data published on Tuesday showed that the Conference Board Consumer Confidence Index declined in September to 103.0, down from a revised 108.7 in August. This was its lowest level since May 2023 and marked two consecutive months of decline. The Present Situation Index, which measures consumers’ assessment of current business and labor conditions, rose slightly to 147.1 from 146.7.
The Expectations Index, which measures the consumers’ near-term prospects for business, income, and labor market conditions, dipped to 73.7 in September, down from 83.3 in the prior month. The Expectations Index fell below the crucial level of 80, which signals a recession within the next year. Consumer fears of a looming recession also ticked higher in September amid the short-term economic contraction anticipated in the first half of 2024.
Focus will be on Fed Chair Jerome Powell’s speech on Thursday which is likely to add volatility and create a bearish environment for traders. As such,…
Ethereum price has been struggling in recent weeks on the back of its unstable on-chain performance and global economic uncertainty. The general market performance has not helped much either, as most altcoins have failed to hold an upside momentum. Ethereum, one of the most valuable assets in the cryptocurrency market, has dipped by nearly 3% in the past week and more than 5% in the month to date.
Fundamental Analysis
Ethereum price has been on a consistent bearish trajectory over the past few weeks against the backdrop of a dull crypto market and a stronger dollar. The dollar index, which measures the performance of the greenback against six major currencies, has been hovering around its highest level since December 2022 since Thursday. At press time, the dollar index was trading higher at 105.720. A stronger dollar tends to be bearish for risk assets, particularly cryptocurrencies.
Investors have been assessing the economic outlook, considering what could be next for interest rates and the economy, ahead of a string of key economic data due later this week. Investors will be looking at the data from the housing sector, as well as the CB Consumer Confidence data slated for Tuesday. Additionally, the quarterly GDP data for Q2 is expected to be published later Thursday, concurrently with the initial jobless claims.
The Fed’s favorite inflation gauge, the personal consumption expenditure index (PCE), is also expected to be published on Friday. Various…
Cardano price has been on a steep downward trajectory for the past few weeks on the back of a dull market and global macroeconomic concerns. The altcoin is down by nearly 6% in the month to date and more than 3% in the past week. Additionally, ADA price has shed more than 30% in the past six months, with its year-to-date price remaining in the red. Cardano’s total market cap has shrunk by more than 1% over the last day to $8.6 billion, while the total volume of the asset traded over the same period edged 13% lower.
Fundamentals
Cardano price has recorded significant losses in recent weeks in tandem with the global cryptocurrency market. Most of the digital assets have been treading waters over the past few weeks, with the premier cryptocurrency struggling to break above the crucial level of $27,000. The global crypto market cap has increased slightly over the past 24 hours, while the total crypto market volume decreased by 25%.
The Crypto Fear & Greed Index, which is a key measure of the emotions driving the cryptocurrency market, is a fear level of 39, slightly lower than the fear level of 42 recorded last week. A fear level usually indicates a decline in risk appetite by investors which might prompt traders to sell irrationally.
Investors have been assessing what could be ahead for the economy while weighing the outlook for interest rates after…
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