The sixth largest crypto is hanging on the very edge of a cliff as uncertainties loom large in the market, especially from the United States. Despite the total market cap falling below the $1 trillion mark on Saturday to stand at $963 billion, XRP price is relatively unchanged over 24 hours but is trading at $0.3691.
Crypto Market Overview – Can XRP price bounce back?
It has been another tough week in the crypto market due to deteriorating economic conditions and regulatory pressure from US agencies. The collapse of Silvergate Bank last week hinted at the ghost of the FTX exchange’s messy explosion coming back to haunt the industry.
In other emerging news, Circle’s USDC stablecoin is falling from its dollar peg and diverging 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 contagion after the collapse of another US bank in March 2023. USDC is at $0.9052 according to live price data by CoinGecko, a figure well below the expected price of $1.
Nearly $3.3 billion in USDC cash reserves may be in SVB custody, raising concerns among investors about Circle’s ability to fully return the $37 billion stablecoin. Stablecoins have become a fundamental part of the crypto industry and are slowly gaining a foothold in the traditional banking sector.
Remember it TeraUSD collapses in May 2022 And the bloodbath that spread all over the market. crypto giants like Voyager Digital, Three Arrows Capital and Celsius were not able to survive the crash, which resulted in a series of bankruptcy filings.
The possibility of a sell-off over the weekend is not to be taken away, with investors likely to be nervous about transitioning to another stablecoin crash. However, data shared by Woo Blockchain on Twitter suggests that “the actual risk exposure may be only a small amount of money.”
That said, investors should closely follow the events surrounding USDC and SVB over the next few days as they could help determine where the crypto market is headed.
This support is needed for XRP price to bounce back
XRP price appeared to be relatively stable as it traded at $0.3691 during the European session on Saturday. An aggressive push from the bulls in January lifted the cross-border coin to just above $0.40 before the bears took the reins in early February.
A look at the XRP price back in September last year reveals its upper point of control at $0.50. On the downside, the point of control on the downside is $0.30. Furthermore, XRP lost steam in January after completing a multi-month trend line drawn from the September high of $0.56.
While an immediate correction in XRP price will be a dream, given the many headwinds in the crypto market, a lot of focus may be on the ability of bulls to find support and hold it, at least for this weekend.
That said, the mounting pressure on the $18.5 billion crypto could not be understood, given the major leveraged losses that briefly came into the picture in January.
For example, XRP is now trading below all major applicable moving averages, including the 200-day exponential moving average (EMA) (line in purple), the 100-day EMA (line in blue), and the 50-day EMA (line). Red).
The next temporary support will be provided by the buying crowd at $0.35. Holding this support is crucial for an immediate resumption of the uptrend. Otherwise, XRP price could decline further to test $0.30.
Two outcomes would be expected at $0.30, with the first allowing XRP price to take advantage of the new liquidity and aggressively push for a trend reversal. On the other hand, trading below the same point of control could trigger another selloff as hell breaks loose in front of the bulls. The decline below $0.30 cannot be stopped unless XRP reaches $0.25.
Why the XRP price drop is unstoppable
Almost all of the key technical indicators used in this analysis paint a grim picture for XRP price, which is likely to remain bullish for the next few sessions and possibly days. For starters, the Moving Average Convergence Divergence (MACD) indicator is giving a bullish sell signal, as confirmed on Thursday, March 9, 2023.
Besides, the MACD is now well below the average line at 0.00 and searching for a downside zone. If the support at $0.35 does not hold, XRP price will have no choice but to seek refuge at the next key level at $0.30.
The Money Flow Index (MFI) position reinforces the notion that the increase in trading volume is primarily driven by selling activity and that XRP price lacks sufficient momentum and liquidity to reverse the trend, at least for now. Is.
Investors looking to take long positions in XRP may want to wait until the coin confirms support and starts bouncing back. If the support at $0.35 halts the downtrend, traders will target $0.38 and $0.40, respectively, with a move to $0.56 still possible in the coming weeks.
XRP options to buy today
If you are looking for XRP as well as other high-potential crypto projects, we review the Top 15 Cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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