Following a temporary bounce driven by the Fed's chairman remarks, XRP price has once again plummeted due to a massive Bitcoin sell-off. What lies ahead for Ripple's token in this volatile environment?
The XRP price fell below the symbolic $3 threshold this Monday, erasing gains accumulated over the weekend. This setback comes after the dramatic Bitcoin crash, which plunged by $4,000 in just minutes.
Ripple’s token had successfully distinguished itself in recent days, benefiting from Jerome Powell’s speech, the Federal Reserve Chairman. His comments about possible interest rate cuts had rekindled optimism in the cryptocurrency market. XRP had risen from $2.78 on Friday to a peak of $3.11 on Sunday, recording a gain of nearly 12% in two days.
But this rebound proved short-lived. Sunday evening, a major investor, nicknamed a “whale,” decided to sell off their Bitcoins, triggering a collapse in the price of the leading cryptocurrency. In just minutes, Bitcoin dropped by $4,000, dragging other digital assets down in its wake.
This liquidation sparked panic among investors, who rushed to sell their altcoins. Ethereum, which had reached a new all-time high above $4,900 on Sunday, fell back to $4,670. For XRP, the blow sent it diving below the $3 mark, a threshold it has struggled to maintain for weeks.
Technically, the next support zone is around $2.80. If this level is breached, the price could then collapse to $2.60. On the upside, major resistance sits at $3.20. A decisive breakthrough of this level would be necessary to consider a new bullish rally.
According to analysts, the psychological $3 threshold remains crucial for XRP’s future. As long as the cryptocurrency fails to establish itself firmly above this level, sellers are likely to maintain the upper hand. XRP is therefore at a decisive moment, facing an important test to confirm or deny its momentum.
The cryptocurrency market remains extremely volatile, and XRP is no exception. After a brief respite linked to hopes raised by the Fed, the Bitcoin crash has once again plunged Ripple’s token into uncertainty.
Whether or not XRP crosses the $3 threshold will be decisive for its short-term future. The coming weeks will be critical for the cryptocurrency, which must prove its ability to withstand the storm. Investors will closely monitor the evolution of this situation.
Currently, XRP is trading around $2.94, with a potential return of over 35% if the price reaches $4 by the end of the year. Don’t miss this unique buying opportunity.
Here’s how to take advantage of it on Bitget exchange right now:
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