XRP
XRP Price Tumbles Amid Crypto Market Turbulence: Buy the Dip?
XRP price pulled back on Monday, shedding some of the gains made in the previous trading sessions amid a dip in crypto prices. At the time of writing, XRP was trading 5.75% lower at $0.6230. The asset’s total market cap crashed by more than 5% over the last day to $33.7 billion, ranking it 5th after Binance Coin. On the other hand, the total volume of the XRP token traded over the same period climbed 18% higher, suggesting either an increase in selling or buying pressure.
Fundamentals
XRP price plummeted on Monday, hitting an intraday low at the crucial support level of $0.600, leaving the XRP community in suspense about whether to panic or seize the opportunity. Data by CoinGlass has revealed that the recent downturn in the XRP price has resulted in a staggering $5.55 million in liquidations for long XRP positions. This constitutes 97.7% of both long and short liquidations over the past 12 hours.
The recent weakness in the crypto market outlook has been among the key factors in XRP’s decline. Data by Coinmarketcap shows that the global crypto market cap has decreased by 3.20% over the last day, while the total crypto market volume jumped by more than 45% over the same period. The Crypto Fear and Greed Index, which measures the crypto sentiment by market participants, has slightly declined from an extreme greed level of 83 to 80, suggesting that the risk appetite among investors is slowly declining.
All eyes remain fixated on the upcoming key inflation data and the US Federal Reserve’s last monetary policy meeting for the year. According to the CME FedWatch Tool, markets are anticipating a 98.4% chance that the Fed will keep interest rates on hold at its meeting later this week. Beyond the Fed, interest rate decisions by the Bank of England, Swiss National Bank, and the European Central Bank are slated for this week, with all three banks likely to signal higher-for-longer interest rates.
XRP Price Analysis
The daily chart shows that the XRP price has been struggling to maintain its position above the critical support level of $0.600. The altcoin briefly dropped below the 50-day exponential moving average before moving slightly higher. XRP remains above the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has dipped below the signal line and the neutral zone, revealing an increase in selling pressure.
As such, the XRP price is likely to continue struggling to find direction in the ensuing sessions as bears eye the support of $0.600. A decline below this level might push the XRP price lower to the next support at $5,535. Conversely, we cannot rule out a breakout above the immediate resistance at $0.700 which will invalidate the bearish thesis.
XRP Price Chart