Key Takeaways
- XRP, the fifth-largest cryptocurrency by market cap, is 3.5% down today, trading near $2.55.
- The XRP downtrend is due to a failed breakout attempt above the $2.67 resistance zone.
- Despite the downtrend, XRP’s trading volume has significantly spiked and exhibited a 7% increase compared to the last 24 hours.
- Macroeconomic factors like the U.S. government shutdown, reduced odds of a December Fed rate cut, are some major factors that drive the XRP downtrend.
XRP, the native cryptocurrency of XRP Ledger, and the fifth-largest cryptocurrency by market cap, is 3.5% down today and has been continuing the downward momentum for a long period of time. According to the latest market data, the ongoing XRP downtrend is due to a failed breakout attempt to trade above the $2.67 resistance zone, which triggered increased selling pressure and profit-taking. XRP’s sliding from $2.63 to $2.59 after a failed breakout has incited a large spike in its trading volume to around 392.6 million tokens. Experts urged the traders they watch the $2.58 support level, and a break below this particular level could signal further downside. According to experts, a successful bounce above XRP’s support level could see the digital asset retest $2.67 and possibly deliver higher levels in its short-term run.
The technical analysis and research firm EtherNasyonaL posted on X that when a resistance level is tested more than three times and the price continues to accumulate above a major support, that resistance is destined to break, sooner or later. They mentioned that each test weakens the sellers’ defense. They noted that supply gets absorbed, liquidity thins out, and the market builds pressure. They added that meanwhile, steady accumulation above strong support shows that buyers are quietly taking control, and energy is being stored for an explosive move. They concluded that the breakout is no longer a question of if, but when.
Despite today’s short-term bearish momentum, XRP is still 6.36% higher than the previous week. The overall market momentum is mixed, with short-term signaling bearish, whereas long-term momentum is bullish. The latest on-chain data shows that a large number of XRP holders have been offloading sizable amounts, locking in short-term gains.
Why XRP’s Price is Down Today
XRP’s ongoing price drop or downtrend is due to several combined factors. XRP recently faced a failed breakout attempt above the critical resistance near $2.67, and this price rejection is one of the main reasons for the active downtrend. The price rejection ignited a profit-taking trend among the traders and increased XRP selling pressure. The increased selling pressure has led to a significant amount of XRP offloading by large XRP holders.
The broader crypto market outlook is bearish, and it has been showing weakness since Fed Chair Jerome Powell denied the possibility of a Fed rate cut in December, and his cautious comments on the “sell-the-news” event on October 29 triggered panic among investors and impacted XRP alongside prominent cryptocurrencies like BTC and ETH. Jerome Powell claims that his tone might have caused panic in the short term, but on a long-term basis, the decision would be beneficial. Nick Ruck, an analyst at LVRG Research, stated that the Fed’s tone scared investors in the short term, but its plan to end quantitative tightening by December could actually be bullish for crypto in the long run.
In summary, the XRP downtrend today is primarily fueled by the failure to hold on to its resistance level of $2.67, and the Fed decision to discontinue the rate cut programs also made an impact.
Will XRP Go Up Today and Regain the Market Momentum?
According to today’s market data, XRP price movements are influenced by a mix of bullish and bearish signals. XRP technical indicators show mixed momentum, and the market analysts believe that a significant breakout and upward momentum today is unlikely. XRP’s critical support zone is closer to its 200-day moving average, and the value between $2.58-$2.61 remains intact, so that indicates a strong buying momentum, signaling a possible increase in crypto prices, as more buyers create higher demand.
According to crypto experts, a sustained move above $3 psychological level is the only thing that can deliver a promising price rally for XRP. Any breakout below the point does not guarantee a sure-shot price surge. According to today’s market conditions, XRP hitting the $3 psychological point is highly unlikely, so the crypto market will not see a significant XRP momentum today.
XRP is a highly rated and considered asset in the crypto space; the fourth-largest crypto by market cap will exhibit a promising market momentum once the XRP spot ETF decisions are finalized.
Recently, a crypto analyst, pseudonymized as unknowDLT, commented that XRP would end up being one of the greatest opportunities of not only their lifetime, but many to come.