XRP Drops 3.83% Amid Global Economic Uncertainty
1min read XRP, the cryptocurrency associated with Ripple, is currently facing a critical juncture as its price hovers around the $2 mark. The recent downturn in the crypto market, driven by global economic uncertainty, has led to a 3.83% drop in XRP's value over the past 24 hours. This decline is part of a broader market trend, with the total crypto market capitalization decreasing by 1.42% to $2.65 trillion. Major cryptocurrencies like Bitcoin and Ethereum have also experienced significant daily price decreases, exceeding 2%.
The current price of XRP stands at $2.05, reflecting an 11.71% monthly decline. However, when compared to its price seven days ago, XRP has shown a 14.10% increase. The recent price swings can be attributed to several factors, including the intensifying trade war between the US and China. The ban on exports of H20 chips to China by US President Donald Trump has created global economic turmoil, leading to a crash in the stock market and pulling investors away from risk assets like cryptocurrencies.
Prior to the recent drop, XRP experienced a surge to $2.25 over the weekend. This increase was triggered by Trump's decision to pause tariffs for 90 days, excluding those on Chinese imports. Additionally, Ripple CEO Brad Garlinghouse announced an agreement with the SEC, which initially boosted market sentiment. However, the combination of macroeconomic factors and a sudden increase in liquidity has since led to a price correction.
Exchange inflows for XRP have surged from 28 million on April 8 to 55.6 million on April 16, indicating a significant increase in liquidity. This spike in liquidity can lead to increased selling pressure and a bearish market sentiment. The sudden influx of tokens into exchanges suggests that whales or large investors may be selling their holdings, contributing to the price decline.
In the last 24 hours, XRP has seen over $5.1 million in long positions liquidated, along with $1.25 million in short positions. This data suggests a bearish market sentiment, with investors lacking confidence in XRP's future. The long-to-short ratio of 0.938 further indicates that the market expects additional price drops. However, there is still a possibility for a bullish scenario where XRP could avoid further declines.
Looking ahead, the price action of XRP suggests a potential rally if it can retake the $2.10 level. If this occurs, XRP could surge to $2.24, a level that has previously acted as strong resistance. This price point corresponds to the 50-day and 100-day Exponential Moving Averages. Conversely, if XRP falls below the $2 mark, it could experience a significant drop, potentially crashing to $1.61. The outcome will depend on market sentiment and the ability of XRP to overcome current resistance levels.
