In a recent turn of events, the cryptocurrency market experienced a significant jolt, with XRP taking a substantial hit. The digital currency’s value plummeted by over 13%, settling at $0.50. This sharp decline was largely influenced by a series of events that sent ripples across the crypto landscape.
The crypto community was abuzz with rumors that Elon Musk’s Tesla had offloaded its BTC holdings worth $377 million. This news, coupled with the Federal Open Market Committee (FOMC) minutes indicating potential interest rate hikes to combat inflation, created a whirlwind of negative sentiment.
The U.S. is witnessing its interest rates soar to levels not seen in many years. Specifically, the 10-year yield has surged to a 15-year peak, casting a shadow over risk assets. If the bond sell-off persists, it could further exacerbate the downward trend of risk assets as the week concludes.
XRP, which had already been grappling with a weakened market structure post its July peak of $0.93, bore the brunt of this selling frenzy, spiraling down to $0.50. The prevailing sentiment suggests that the path of least resistance for XRP is currently downward, a sentiment further intensified by the rise in short positions.
Adding to the concerns of XRP investors was the U.S. Securities and Exchange Commission’s (SEC) move to appeal a portion of the verdict in its lawsuit against Ripple. The SEC’s interlocutory motion seeks the court to reconsider its decision, which stated that XRP’s programmatic sales on third-party platforms aren’t securities, unlike direct institutional sales. Judge Analisa Torres has approved the SEC’s appeal request, setting the agency’s deadline of August 18. On the other hand, Ripple has until September 1, with a potential extension to September 8, to present its counter-motion.
At the moment, XRP stands at $0.507893, reflecting a 13% drop in the last day. The market’s bearish mood is palpable, especially after the failure to maintain the $0.60 support threshold. Currently, XRP is hovering at its day’s lowest, with the bearish trend eyeing the $0.40 support mark.
The daily technical indicator for XRP/USD is bearish, with most of the oscillators in the oversold region. The moving average convergence divergence (MACD) also indicates a bearish trend, with the MACD line underperforming the signal line. The Chaikin money flow (CMF) is also in the negative region at -0.04, indicating a massive outflow of capital from the XRP market. The Relative Strength Index (RSI) is also in the oversold territory at 24, indicating that prices could be set for a correction.
