Cryptocurrencies are experiencing a downturn today, with XRP leading the decline. Following Tuesday’s rally that pushed Bitcoin and other cryptocurrencies higher, XRP has dropped nearly 4.55% to reach around $2.07 in recent hours. This price dip follows weeks of sideways action for XRP, which is only up 14% this week despite positive news.
While analysts remain optimistic about the future of XRP and its potential as a payment solution, the current market sentiment towards the cryptocurrency is bearish. Market experts point to support at $2 as crucial, indicating whether the dip can be considered temporary or signals an impending downturn remains to be seen. A drop below this level could open the door for further declines, potentially pushing XRP to levels near $1.61-$1.72 where buying interest has historically held.
However, a decisive move above $2 may spark a potential rebound, with some analysts forecasting a bounce toward $2.23, which aligns with short-term daily SMA 50 moving average.
The cryptocurrency market isn’t immune to broader economic forces. Yesterday’s plunge in Nvidia shares and the subsequent sell-off has shaken markets further. There was also significant liquidations on Tuesday totaling $240 million according to CoinGlass data. As of today, traders are bracing for the U.S. retail sales report and Federal Reserve Chairman Jerome Powell’s address, which may offer further insights into market dynamics.