Trending cryptocurrency, XRP, has experienced a steep decline following a notable crash that sent the entire crypto market plummeting by 7%.
This movement has created panic across the XRP community as members wonder what’s next for the coin. Earlier this week, the coin jumped to $2.7 following the launch of the RLUSD stablecoin. However, this rally wasn’t sustained as the coin fell gradually to its current state of $2.19.
Notably, more concerns have been raised as XRP’s technical chart shows that the coin could drop even further if certain conditions are not met.
What the XRP/USDT Chart Say
The XRP relative strength index (RSI) signals a clear overbought state even though the XRP-USDT chart shows an upward trend for the last few weeks. The market failed to maintain this rally and is now consolidating gradually as the momentum fades.
However, XRP still holds $2 as its support even though it was breached earlier today when it fell to $1.94. Maintaining this support could help propel XRP to the $3 range, however, if the price falls and remains below this level, it could trigger a steeper correction toward $1.4.
Source: TradingView XRP/BTC Chart
On the XRP/BTC pair, a similar movement has been observed. XRP broke through several resistance levels during its rally to $2.7 earlier this week. However, since the 2,200 SAT support region is currently being tested, the price has been rejected lower by the 2,800 SAT resistance zone.
The relative strength index still signifies a bullish momentum since its value rests above 50%. However, the market would fall significantly lower toward the 1,600 SAT zone if the 2,200 SAT support level were broken to the downside, which would make this scenario fail.
Source: TradingView Why is XRP Down Today?
XRP joined the global crypto market in a downtrend today, triggered by the federal reserve rate cut for December. The Federal Reserve announced a 0.25% rate cut with the chairman Jerome Powell giving a cautious outlook for 2024.
Following this, the crypto market was rocked by a wave of selling pressure. Amid this, the Bitcoin and Ethereum spot ETF saw massive outflows.
As per Soso Value data, BTC ETFs recorded $680 million as of December 19. Similarly, Ether ETF saw a withdrawal of $60.47 million within the same time.
Ultimately, XRP’s recent price decline highlights the volatility and uncertainty inherent in the cryptocurrency market, amplified by macroeconomic factors like Federal Reserve decisions.
While support levels provide hope for recovery, a failure to hold key thresholds could lead to further losses, emphasizing the need for caution among investors.
The post XRP Risks $1.4 Crash if it Fails to Hold Support appeared first on Coinfomania.
