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HomeCrypto NewsMarketXRP Risk of Revisiting $0.35, Ends Two-day Gaining Streak

XRP Risk of Revisiting $0.35, Ends Two-day Gaining Streak

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XRP ended a two-day gaining streak yesterday with a 2.43% decline amid the bearish atmosphere triggered by the Fed.


XRP might be at risk of revisiting lows at the $0.35 territory – a price point last witnessed late November – as the U.S. macroeconomic climate precipitates a wave of bearish sentiments that contributed to a hiatus of the asset’s two-day winning streak yesterday. XRP ended Wednesday with a 2.43% decline following the Federal Reserve’s 50 bps interest rate hike, as updates on the legal case between Ripple and the SEC stalled.

The U.S. Macro Climate & The Aftereffects of the FTX Collapse

Following respective gains of 1.71% and 2.01% on Monday and Tuesday, XRP’s bullish run was hit with fierce resistance from the bears on Wednesday, as the asset lacked any support from the broader crypto scene and the Ripple v SEC case. Despite a dial-back from the more aggressive rate hikes of four consecutive 75 bps, the Federal Reserve’s 50 bps interest rate increase on Wednesday, alongside Jerome Powell’s speech, was not favorably received by the markets.

The interest rate increase disclosed yesterday brought benchmark interest rates to 4.25% and 4.5%, marking the highest rate in 15 years. The stocks and crypto markets responded terribly, with the Nasdaq Composite dipping by 0.76% and the S&P 500 declining by 0.61%. These indexes saw their two-day streaks come to an end.

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XRP’s decline was not unexpected. The crypto markets have especially come under greater scrutiny from regulatory authorities and U.S. lawmakers following the FTX implosion. Yesterday, the Banking Committee held an open hearing on the FTX debacle, featuring testimonies from four individuals, including FTX investor Kevin O’Leary. Calls for greater scrutiny of crypto assets sprang up, with some individuals suggesting a ban on digital assets.

The pressure placed on the digital asset scene by the recent need for increased scrutiny was further exacerbated by the Federal Reserve’s interest rate hike despite the auspicious reports on CPI data. The U.S. macro climate will continue to play a role in market sentiments, as data on retail sales and jobless claims, among others, will contribute to tilting investor sentiments.

Notwithstanding, updates on the SEC vs. Ripple case, reports on regulation, and news related to Binance are likely to overshadow the effects of the macro conditions. Yesterday, U.S. Congress candidate January Walker called for collective support from the crypto community for Ripple against an SEC overreach. Meanwhile, Cardano founder Charles Hoskinson could be getting backlash if the Ripple settlement he forecasted for today fails.

XRP’s Price Analysis

XRP is on the verge of printing another losing session, as it has declined by 0.96% since the start of the day. This follows the 2.51% loss of yesterday. The asset is trading at $0.3819, with a decline of 2.92% in the past 24 hours.

XRP’s current position is extremely delicate, as its journey toward the first crucial resistance at $0.3956 is hinged on the reclamation of the price point at $0.3855. The market could see a movement to the first resistance zone if the asset can stage a miniature comeback to the $0.3850 level.

Should the asset successfully test the $0.3956 resistance level, a prevailing bullish momentum should result in the reclamation of the $0.40 territory, as its second crucial resistance point sits at $0.4054. XRP’s third significant resistance level is at $0.4253 – a value attained over one month ago.

If XRP misfires as it looks to scale through the pivot point at $0.3855, the asset could see a decline that would bring it to the first crucial support level at $0.3757. Following an extension of the shenanigans of the bears at the first support zone, XRP’s second support is found at $0.3656, which could come into play if the asset fails to hold above the $0.37 level. The third support for XRP rests on the $0.3456 price point.

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Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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