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Fall To $0.3 Imminent Pre-Bitcoin Halving? – Crypto News

Published

1 year ago

April 17, 2024

Dripp

The crypto market is sinking further below its meteoric Q1 peak of $2.86 trillion amid soaring geopolitical tensions in West Asia. XRP price fell victim to the massive sell-off last week, plummeting to $0.43 on Sunday followed by a minor recovery.

However, the uptick did not last long above $0.5 amid rising selling pressure ahead of Bitcoin’s third halving cycle.

After a more than 21.2% decline in a week, XRP is exchanging against the dollar at $0.4766 during US business hours on Wednesday. Bitcoin price is also sinking in the red, testing support at $60,000 amid risks of a further drop into the $50,000.

Major altcoins like Ethereum were not spared with investors facing the brunt of the drop from March highs. Ether had dropped to $2,950 at the time of writing, cumulatively falling by 15 percent in seven days.

A staggering 26% decline in the 24-hour trading volume to $1.66 billion underpins increasingly low interest in XRP among traders.

XRP has receded to the seventh position with a market cap of $26 billion, sitting behind, Lido Staked Ether, a liquid staking token pegged to ETH’s price.

Where Is XRP Price Heading As Crypto Market Flips Bloody

XRP price is currently testing an important support area at $0.47. This area has since July 2023 functioned as a springboard, where bulls get their footing, changing the trend’s course upwards and stopping persistent losses.

Should bulls defend the area around $0.47, an immediate recovery may ensue paving the way for a new path toward $1.

Despite that strong support, traders need to be cautious in mind that support areas tend to weaken when tested multiple times.

Trading below $0.47 would magnify XRP’s technical weakness exponentially exposing the cross-border tokens to short sellers. Some investors may prefer to sell at a loss to protect their wallets from volatility, thus adding to the already overwhelming selling pressure.

The Relative Strength Index (RSI) bearish outlook as it slides into the oversold region hints at a stronger bearish grip — one that may take XRP more targeted momentum to beat for a sustainable recovery.

A glance at the Moving Average Convergence Divergence (MACD) indicator paints an even gloomier picture for XRP’s short-term future. As the MACD dives into the negative region below the mean area (0.00) losses become apparent while recovery gets more distant.

The upcoming Bitcoin halving might be the only hope for the crypto market’s recovery in April. However, its impact may be subdued by the tensions between Israel and Iran and the larger West Asia region.

The Ripple Vs SEC lawsuit is another key factor likely to determine the long-term outlook of XRP. Ripple’s legal team will file a response to the SEO request for a humongous $2 billion fine for its role in selling unregistered securities to institutional investors.

Although the court ruled that XRP sales on exchange platforms did not constitute security offerings in July 2023, Ripple had a case to answer for direct institutional sales of XRP.

A win for Ripple could further bolster the position of XRP in the market, making the token an attractive investment product. However, admitting to direct security sales to institutional investors may expose the company to multiple lawsuits further dragging the company into legal battles and potentially suppressing XRP price in the process.