XRP Price Slips 2%, ETF Delays and Trade Tensions Pressure Markets
Key Takeaways
- With prices falling to $2.38, XRP continues its weekly journey of losses.
- A crucial support zone denoted between $2.16 and $2.20 becomes XRP’s target if bear runs continue.
- The government shutdown that has shaken the country has delayed the SEC approval for an XRP-ETF
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Introduction
With President Trump’s threats continuing to rock the industry, XRP faces an additional challenge as the SEC is facing manpower issues post the government shutdown. Will XRP survive this rocky road? Let us find out.
XRP’s current market price is at $2.41 with a market cap of $144.81 billion. The trading volume at the moment is $4.18 billion.
Current Market Scenario
| Fear and Greed Index | 27(Fear) |
| Market Sentiment | Bearish |
| Supply Inflation | 6.03%(High) |
| Dominance | 3.93% |
| Volatility | 8.71%(High) |
Market Sentiment and The Falling Price
The US-China trade tensions, coupled with export restrictions on software components, have caused widespread panic among traders.
The general market sentiment yielded towards removing risky assets from the portfolio, and XRP has fallen victim to this sudden bearish drive.
With prices dropping to $2.38, XRP seems to be performing worse than the overall crypto market.
Amidst the Bitcoin dominance, XRP’s decline seems to speak of a bleak future.
Lack of Institutional Support
With the SEC proceedings coming to a halt, XRP’s entry into the ETF market got delayed. This lack of institutional identity is yet another challenge XRP will have to face and overcome in the near future.
The government shutdown has forced the SEC to manage its work output with a limited number of staff. Based on their present conditions, experts estimate that an additional duration of 3 to 4 weeks may be required to restart normal operations. This lag could seriously cost XRP in its market performance.
Such an institutional procedure lag has caused XRP to lose the inflow expected from that market. This makes XRP at risk to market pressure from all sides. From what we could gather from Bloomberg Intelligence, it seems that XRP’s entry into the ETF market remains at an 85% chance, that too by year-end.
What the Technical Analysis Says
From what could be gathered of the latest technical data, the indication is largely biased towards a bearish market. Relative Strength index o14 is at 38.55, indicating a neutral condition; however, the market is coming closer to an oversold condition
MACD Level(12,26) indicates a value of -0.13246, which is an indication of weaker momentum.
Here are some other technical indicators and their values for XRP
| RSI 14 | 38.54695 |
|---|---|
| Stochastic %K(14, 3 , 3) | 62.14191 |
| Commodity Channel Index (20) | -57.24035 |
| Average Directional Index (14) | 41.27191 |
10-day EMA, 20-day EMA, and 50-day EMA all remain above the price at 2.4318, 2.5338, and 2.7066, respectively, suggesting that the price is going to be weaker in the near future.
The 200-day EMA, which is at 2.6121, remains the resistance point, which limits upside confidence.
Trader’s Viewpoint
$2.16–$2.20 remains the important support zone, which is considered to be a decisive point by market analysts. If the market falls below these limits, it could expose both $1.94 and $1.58. The only way to get out of this downward spiral is to reclaim the $2.50 mark.
Even with this short-term pressure, the data inflow from 17th October, where an indicated $3.81 billion of open interest, is suggestive of speculative trading despite the short-term pressure experienced by the market.
According to the experts, the only way to re-establish the bullish momentum is if the price returns to $2.64. The chances for this depend on the finalization of the USA-China tariff discussions and SEC approval, which are quite low.
The Bottom Line
Until there is a finalization on the ETF confusion or the market stabilizes, XRP’s future remains neutral-to-bearish. With traders expecting a larger market recovery and institutionalization, the path to stabilization seems difficult for XRP.
| Disclaimer: These crypto price forecasts are based on predictive modeling and should not be considered financial advice. |
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