XRP Price at Risk of Deeper Meltdown Amid Crypto Market Downturn

The XRP price has lost its bullish momentum and is now at risk of a deeper meltdown. The ongoing decline is largely driven by macroeconomic factors in the United States, where the threat of hefty tariffs on Canadian, Mexican, and Chinese goods has led to concerns of stagflation and potential interest rate cuts by the Federal Reserve.

As a result, the XRP price dropped below the $2 support level for the first time since February 2. Meanwhile, the 10-year Treasury yield has fallen to 4.26%, and the 30-year yield has dropped to 4.53%, indicating a shift in market sentiment.

Ripple’s Fundamentals Remain Solid

Despite the price decline, Ripple’s fundamentals remain solid. The odds of the Securities and Exchange Commission (SEC) ending its lawsuit against Ripple have improved, especially after the agency dropped its cases against Coinbase and Uniswap.

The XRP Ledger ecosystem continues to attract more developers, and speculation over a potential spot XRP exchange-traded fund (ETF) has increased. If approved, an XRP ETF could attract billions in inflows, driving higher demand for the token.

XRP Price Crashes to the Danger Zone

Technical indicators suggest that Ripple may be headed for a strong bearish breakout in the coming days. The price crashed to a low of $1.9615, a key level since it served as the neckline of the head-and-shoulders pattern.

Key levels to watch include:

  • The 50% Fibonacci retracement level, where the price has reached
  • The 50-day moving average, which the price has fallen below
  • The Average Directional Index (ADX), which has surged to 36, indicating a strong trend

Given these factors, Ripple’s price could decline further to the 61.8% retracement level at $1.6230, where it may experience a reversal. Failure to hold this support could result in further downside, potentially pushing XRP to $1.13, the 78.6% retracement level, approximately 45% below the current price.

Tips for XRP Investors

Investors should keep a close eye on the XRP price and watch for key levels, including the 61.8% and 78.6% retracement levels. A strong bearish breakout could lead to further declines, while a reversal at the 61.8% level could signal a potential bounce.

Investors should also consider the following:

  • Keep an eye on macroeconomic factors and their impact on the crypto market
  • Monitor the progress of the SEC lawsuit against Ripple
  • Watch for developments in the XRP Ledger ecosystem and potential ETF approvals

For more news and updates on the crypto market, visit Global Crypto News. Stay informed and stay ahead of the curve with the latest news and analysis.

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