Price of $XRP $ (XRP) has erased all the gains it made in the last two weeks. The decline was attributed to several factors, including the delay in Ripple's lawsuit against the SEC and the anticipated decline in interest rate cuts in September, among other factors. The SEC held a closed-door meeting
The highly anticipated closed meeting of August 1 between the authorities of the United States Securities and Exchange Commission (SEC) attracted the attention of crypto traders, with many comments that the representatives will discuss the decision with Ripple. However, the meeting was abruptly canceled. Ripple and the SEC have been tight-lipped, not offering specifics for the suspension, leaving the crypto community reeling. The price of XRP has decreased by about 10.75% since August. 1, with today's loss of 6.75%. The cut rate is in September
XRP's loss today is part of a broader crypto market decline, which was impacted by the fallout from September's interest rate cut. From August 2, CME data shows that the probability of a 25 base rate (bps) cut in September is 71.50%, down from 88.2% last week. Cut bets fell following Fed chairman Jerome Powell's July 31 conference, where he said any tough decision would depend on whether easing eases. Powell:
"The question will be whether the general data, the perspective of change, and the balance of risks are consistent with growing financial confidence and maintaining a strong labor market. If the test is met, the rate reduction in our policy may be on table as soon as the next meeting in September."
The price of XRP has dropped as much as 15.35% since Powell's press conference, indicating that many crypto traders are profiting amid the uncertainty of the rate. Ripple's 1 billion XRP open cargo
Ripple has moved over a billion XRP in the past 24 hours as part of a planned fund release from escrow. Whale Alert posted a series of slides showing these massive transfers in and out of Ripple's escrow fund. As of Aug. 2, 500 million XRP were withdrawn from the escrow account in two stages. This ultimately increases the supply in the market. If demand does not rise to match this influx, it can lead to downward pressure on prices. However, Ripple may also close a significant part of the newly released XRP, as its operations following the opening on June 1. Also, the company has also closed 800 million XRP, although it is selling around 300 million XRP, worth $182 million. XRP price technical: bearish divergence is selling
Today's XRP loss is part of a broader correction that precedes a bearish divergence on the daily chart. In particular, a bearish divergence is confirmed when the price is high but its influence indicator — the relative strength index (RSI), makes a low high. In other words, the increase in money does not have enough influence to continue, leading to a correction. Related: XRP déjà vu: Is a 60,000% price increase imminent? XRP has entered such a correction after exiting the highs around $0.658 on July 31, which coincides with the RSI high-low formation at 65.48. The increase in daily averages during the correction shows that traders are guilty of bearishness. As of Aug. 2, XRP price is testing the 0.5 Fibonacci retracement level around $0.571 as support, looking to rebound to the next Fib line around $0.607. Conversely, a break below the $0.571 support can see the 50-day (red wave) and 200-day (green wave) tests as moving averages (EMAs) as support, which steps on the same level of $0.54. This level continues to align with the 0.382 Fib line. This article does not contain investment advice or recommendations. Every investment and business move is risky, and students should do their own research when making a decision.
