XRP News Today: Crypto Tokens Drop After US Debt Downgrade

On Friday, the top crypto layer 1 blockchain tokens, including Ethereum (ETH), Ripple (XRP), and Solana (SOL), experienced a decline in value following the downgrade of the US debt by Moody’s credit rating agency. This event raised questions about whether the drop was a mere correctional sell-off or the beginning of a deeper reversal in the market.

Ethereum's short-term chart indicates a series of lower highs and lower lows since reaching a local top at $2,737. The most recent lower low confirmed the major $2,500 level as resistance once again, which is unfavorable for bullish investors. However, the descending trendline remains intact, and the price is struggling to maintain the $2,400 support level. The Stochastic RSI is nearing the bottom, which could provide the necessary momentum to reach the $2,500 resistance level again.

The daily chart for Ethereum shows a descent in price since November 2024, with a recent surge through the descending trendline. This pattern suggests the formation of a flag. If the breakout is to the upside, the sharp uptrend could continue, but a downside breakout might trigger a retreat to $2,000.

Ripple's daily chart reveals that the price has fallen back below the descending trendline but has touched the 0.618 Fibonacci level, indicating a potential bounce. The $2.30 horizontal level serves as a major support. As long as there is no significant meltdown when the US stock exchange opens later on Monday, the price of XRP might rebound, allowing bulls to attempt another higher high. However, a lower low below $2.08 would be a cause for concern.

Despite a 7% drop in value on Monday morning, Solana's price has held steady, supported by the ascending trendline and the $161 horizontal support level. If these supports do not hold and the price falls below, a deeper correction could occur. Assuming the US stock market remains stable, a strong bounce back to the $184 resistance level could take place later in the week as short-term Stochastic RSIs, including the daily, start to turn back to the upside.