The sixth largest cryptocurrency hangs on a precipice amid heightened market uncertainty, especially from the United States. While the total market cap fell below $1 trillion to $963 billion on Saturday, XRP’s price remained relatively unchanged over the 24-hour period, trading at $0.3691.
Crypto Market Overview – Can XRP Price Bounce Back?
Deteriorating economic conditions and regulatory pressure from US institutions have provided another difficult week for the cryptocurrency market. His Silvergate bank collapse last week implied that the specter of the FTX exchange’s messy implosion was back to haunt the industry.
In another piece of news, Circle’s USDC stablecoin has plunged and deviated from its dollar peg amid panic over the collapse of another banking entity, SVB Financial Group. SVB is a subsidiary of California-based Silicon Valley Bank.
The second largest stablecoin is reportedly suffering from an epidemic after the collapse of the second largest US bank in March 2023.
About $3.3 billion of USDC’s cash reserves may be under the control of the SVB, raising concerns among investors about Circle’s ability to fully back its $37 billion stablecoin. Stablecoins have become a fundamental part of the cryptocurrency industry and are gradually finding a foothold in the traditional banking sector.
Remember the TerraUSD crash in May 2022 and the subsequent carnage across the market. Crypto giants such as Voyager Digital, Three Arrows Capital, and Celsius failed to survive the crash, resulting in a series of bankruptcy filings.
A possible weekend sellout cannot be taken off the table as the spillover of another stablecoin crash will likely cause investors to panic. However, data shared by Wu Blockchain on his Twitter suggests that “actual risk exposure may be just a small amount of money.”
That said, investors should closely follow events regarding USDC and SVB over the next few days as they will likely help determine where the cryptocurrency market is headed.
XRP Price Needs This Support To Bounce Back
XRP price looks relatively stable while trading at $0.3691 during Saturday’s European session. After an aggressive push by the bulls in January took the cross-border token just above $0.40, the bears took the reins in early February.
Looking back at the XRP price last September, we can see that $0.50 is the upper limit of control. Conversely, the control point for the downtrend is $0.30. Additionally, XRP lost momentum during the January rally after reaching a multi-month trendline drawn from the September high of $0.56.
An immediate recovery in the XRP price is a pipe dream, but given the many unfavorable conditions in the cryptocurrency market, much of the focus could turn to bulls’ ability to find and sustain support, at least this weekend. There is a possibility
That said, the mounting pressure on the $18.5 billion crypto cannot be underestimated given the major leverage loss that briefly surfaced in January.
For example, XRP is currently below all major applicable moving averages, including the 200-day exponential moving average (EMA) (purple line), 100-day EMA (blue line), and 50-day EMA (blue line). increase. in red).
The next temporary support is provided by buyer congestion at $0.35. Keeping this support intact is crucial for an immediate resumption of the uptrend. Otherwise, he could test $0.30 as the price of XRP plummets.
At $0.30 we expect two outcomes: the first will allow the XRP price to take advantage of the new liquidity and aggressively drive a trend reversal while trading below the same point of control could trigger another sell-off as hell breaks loose in front of the bulls.A drop below $0.30 could be unstoppable until XRP hits $0.25.
Why the XRP Price Continues to Fall
Almost all of the major technical indicators used in this analysis point to a tough situation for the XRP price that could continue for the next few sessions and possibly days. First, the Moving Average Convergence Divergence (MACD) indicator gives out a bright sell signal, as confirmed on Thursday, March 9, 2023.
On top of that, MACD is currently exploring negative territory below the 0.00 mean line. If the $0.35 support fails to hold, XRP price will have no choice but to find a way out towards the next critical level of $0.30.
The Money Flow Index (MFI) positions that the surge in trading volume is largely due to sales activity, and XRP’s price lacks enough momentum and liquidity to reverse the trend, at least for now. supports the idea.
Investors looking to take long positions in XRP are advised to wait until the token sees support and begins to rally. If the support at $0.35 stops the downtrend, the trader will target $0.38 and he will target $0.40, respectively, and he will be able to move to $0.56 in the coming weeks.
Buy XRP now.
XRP Alternatives to Buy Today
If you’re looking for other likely crypto projects alongside XRP, crypto news Industry talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights from crypto industry insiders and is not part of the editorial content of Cryptonews.com.