- XRP’s price drop follows broader market correction and Fed’s rate cut impact.
- Market uncertainty around XRP ETF approval weighs on its price momentum.
- Key support at $2.00, with resistance at $2.50, signals potential upside.
XRP has recently taken a significant hit, with its price dropping to levels lower than the combined market value of major firms like Coinbase, MicroStrategy, and SoftBank as highlighted by Ryan Selkis, the founder of Messari. This downturn comes as part of a broader cryptocurrency market correction triggered by the Federal Reserve’s recent rate cut which began after Fed Chair Jerome Powell’s comments.
Despite XRP’s recent rally following the launch of Ripple’s stablecoin RLUSD, the market correction and other factors have caused the price to fall. This drop has left many investors wondering if now is the right time to buy the token.
Ripple Effect of Market-Wide Correction
The Federal Reserve’s unexpected decision to reduce its anticipated rate cuts for 2025 has sent shockwaves through risk markets, including cryptocurrency. This change in policy has led to a broad sell-off across digital assets, with XRP suffering alongside other altcoins.
Hence, this market-wide correction is a key factor in XRP’s decline. Additionally, XRP’s price surge following the launch of RLUSD may have triggered a “sell-the-news” event. Investors, who had bought in anticipation of the stablecoin’s debut, may have sold their positions, leading to the price drop.
Uncertainty Surrounding XRP’s ETF Approval
Another contributing factor to XRP’s recent struggles is the ongoing uncertainty regarding the potential approval of an XRP ETF in the United States. Experts have suggested that other cryptocurrencies, like Litecoin and Hedera, might be prioritized over XRP. This uncertainty about XRP’s future in the U.S. market could be weighing heavily on its price.
Moreover, while the launch of RLUSD was expected to boost XRP’s value, the market reaction suggests that the broader macroeconomic environment and regulatory concerns are taking precedence.
Key Support and Resistance Levels to Watch
Despite the recent price decline, XRP’s technical indicators suggest that there is still potential for upward momentum. The price has recently broken out of a consolidation phase, indicating strong bullish pressure.
Additionally, the RSI is approaching the overbought zone, which could signal a retracement soon. On the other hand, the MACD is showing a bullish crossover, supporting the ongoing rally.
XRP’s price faces significant resistance at the $2.50 level, with a breakthrough potentially leading to further upside toward previous historical highs. Support is expected at $2.00, and if this level holds, XRP could continue its bullish trend. However, should the price retrace, the $1.50–$1.60 range could act as a fallback zone.
