XRP experiences a significant drop, plummeting to $2.16 in a volatile crypto market. The recent judicial decision overturning Trump's tariffs adds to investor uncertainty. What are the bearish indicators and outlook for XRP?
The XRP is currently under significant pressure, with its price dropping to around $2.16. This decline comes as the broader cryptocurrency market faces a massive sell-off. The total cryptocurrency market value has dropped by 3.1%, now standing at $3.35 trillion.
This abrupt correction was triggered after a U.S. court overturned the trade tariffs imposed by former President Trump, creating new uncertainty for investors.
The International Trade Court ruled that Trump had exceeded his powers under the International Emergency Economic Powers Act when he instituted these import duties. While the Trump administration has appealed this decision, it has nonetheless shaken financial markets, with cryptocurrencies not being spared.
The sudden increase in 30-year Treasury bond yields also confirmed panic and uncertainty in the markets.
Currently, XRP is in a precarious position. Firstly, it has dropped and bounced perfectly on its uptrend line (in yellow). This now has extreme probabilities of being liquidated very soon.
The Ripple’s token could therefore drop below $2.12 in the coming days or weeks. And if the price falls below this support, a cascade of selling and liquidation could take XRP into the demand zone it avoided two months ago, between $1.3 and $1.5.
Moreover, the 3-day Woodies CCI has switched to a selling zone, indicating a bearish trend reversal. This signal has not lit up since March 23, just before a 35% XRP plunge.
In summary, given these bearish signals, investors in XRP would be wise to exercise caution in the short term. While the long-term potential of this cryptocurrency remains significant, current market conditions are volatile and unfavorable. Close monitoring of key indicators will be essential for successful navigation in the weeks ahead.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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