XRP Price Drops 9% as Market Turns Bearish: Should You Brace for More Sell-Offs? – Coinpedia Fintech News
XRP has declined over 9% in the past week, following broader market trends.
Growing tensions in the Middle East have made investors risk-averse, leading to sell-offs in cryptocurrencies.
Large transfers of XRP to exchanges have raised concerns of further sell-offs.
The XRP market is buzzing with predictions, and everyone has their share of versions to convince naive investors. Recently, XRP slipped below the $0.49 mark for the second time this month, reaching its lowest point in a month, mainly due to a pessimistic market and increased selling activity.
The current state of XRP has been gloomy ever since it climbed by 5.21% on October 3, coinciding with a major development in the ongoing Ripple legal case. On that day, Judge Analisa Torres rejected the SEC’s request for an interlocutory appeal related to the July 13 loss.
Bill Morgan Weighs In
Bill Morgan, a well-known pro-XRP legal expert, highlighted the growing bearish trend on October 9. Back then, XRP was still above the $0.50 level, but a gradual decline was evident.
Since October 3, XRP has suffered losses on seven out of eight days, marking a decline of over 9.7%. Currently, XRP is trading at $0.4898, showing a 1.45% drop over the last 24 hours. The 24-hour trading volume has decreased by 29.28%, indicating a declining interest among traders.
Understanding the XRP Decline
As many bet on XRP reaching a new all-time high (ATH) soon, the current bearish outlook has captured everyone’s attention. But what factors are driving this fifth-largest cryptocurrency’s decline?
To start, a broader bearish sentiment has cast a shadow over the entire cryptocurrency market. Major cryptocurrencies like Bitcoin and Ethereum have faced losses in the past week due to lower buying pressure.
The global cryptocurrency market cap reached a two-month high on October 2 but has since fallen by $70 billion, marking a 6.25% drop in just one week. These declines have had a ripple effect, negatively impacting assets like XRP.
Global Conflicts
Moreover, the Israel-Palestine conflict has played a role in pushing investors away from riskier assets such as cryptocurrencies. Growing tensions have made market participants consider potential economic consequences, leading to a shift away from risky assets as a precaution against possible market turmoil.
Also Read: Hamas Militants Raised Millions in Crypto for the Israel Attack: Report
Lastly, significant transfers of funds to exchanges, including a move of 61 million XRP to Bitstamp, have raised concerns of further sell-offs. Ripple also moved 60 million XRP recently, contributing to the downward pressure on XRP’s price.
The Road Ahead for XRP
In the days to come, all eyes will be on XRP as it hovers on the edge of retesting the $0.45 mark, sparking excitement about a potential visit to the pivotal support level at $0.41. The Ripple community is preparing for an eventful few weeks ahead, ready for whatever twists and turns may come their way!
Read More: XRP Whales Keep Buying Despite Flash Crash: Price to Surge?
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