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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 hovering above its highest level since June 2022 over the past few hours. The largest cryptocurrency by market cap has jumped by 28.30% in the past week, while its year-to-date price inches higher to 70.63%. Bitcoin’s total market cap has increased by 4.77% over the last 24 hours to $547.7 billion, while the total volume of the coin traded rose by 50%.
BTC Skyrockets
Bitcoin price was rallying on Monday as most altcoins slumped, led by the largest altcoin by market cap, Ethereum. The global crypto market cap has increased 2.49% over the last day to $1.18 trillion, while the total crypto market volume jumped 34.88%. Bitcoin’s dominance inched 0.98% over the past 24 hours to 46.34%, its highest level since June 2022.
The recent global banking crisis in which three major banks in the US were closed within days has pushed the BTC price higher. Silvergate Capital, Signature Bank, and Silicon Valley Bank recently disclosed operational difficulties, prompting regulators to shut them down.
Switzerland’s largest banking institution, UBS, announced on Sunday that it had entered a merger deal with its embattled rival Credit Suisse. UBS announced that it would buy its rival for $3.25 billion, with Swiss regulators playing a key role in the ideal. According to the Swiss National Bank, the merger will secure financial stability and protect the Swiss economy.
Bitcoin reacted positively to the news, cruising…
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Bitcoin price has been on a 4-day consecutive rally, jumping more than 29% since Friday when Silicon Valley Bank collapsed. Despite the tough year so far, BTC has been among the best-performing cryptocurrencies, jumping 57% in the year to date. At the time of writing, Bitcoin was trading 7% higher at $25,820.
BTC is Outperforming
Bitcoin price has been rallying in its recent trading sessions despite the collapse of the Silicon Valley Bank last week on Friday. The coin’s recent rally has been largely boosted by the current bullish momentum in the markets. Bitcoin’s coin market cap has increased by more than 7% in the past 24 hours, while the total volume of the coin traded slipped 8%.
Data by Coinmarketcap shows that the global crypto market cap has increased further by 5.19% to $1.13 trillion, while the total crypto market volume has decreased by 15.96% over the same period. Bitcoin’s dominance has increased by 0.83% over the last day to 44.24%.
The rally in the crypto market has been intricately linked to the recent US Consumer Price Index (CPI) data. The Bureau of Labor Statistics (BLS) reported a 0.4% increase in inflation in February from January, matching consensus estimates by analysts.
The CPI reading declined to 6% year on year, down from 6.4% in January, in line with market expectations. The core CPI, which excludes volatile food and energy prices, came in at…
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