5 min readBitcoin is resuming its downward move after yesterday’s gains proved short-lived. The largest cryptocurrency trades down 1.5% over the past 24 hours and is on track to fall 3.5% this week.
Losses are being seen across the cryptocurrency spectrum, with Ether trading 4% lower, Solana and Ripple down 5%, and Avalanche falling almost 9%.
The sell-off across cryptocurrencies has triggered significant liquidations, accelerating declines, and fueling volatility. Sentiment analysis indicates that fear has returned to the market.
Bitcoin appears to be the dominant driver, while altcoins are experiencing outsized losses as investors reduce their exposure to higher-risk assets.
In addition to large-scale liquidations this week, institutional demand has also softened, with BTC and ETH ETFs recording net outflows of $225 million and $216 million, respectively.
Separately, the macroeconomic backdrop has deteriorated slightly after Federal Reserve Chair Jerome Powell adopted a cautious tone regarding further rate cuts. Attention now turns towards U.S. data, including core PCE, the Federal Reserve’s preferred gauge of inflation, for further clues on the path of monetary policy easing. However, the market is still pricing in a 25-basis-point rate cut next month.
Risk sentiment is taking a hit, as the prospect of a U.S. government shutdown next week grows. US indices continue to move away from record highs, while gold is pushing higher today.
Ripple falls, but will support hold?
XRP is falling, giving back yesterday’s gains, and remains on track to lose 5% this week, despite Ripple’s developments with Securitize.
This strategic move with Securitize, a tokenization platform, aims to develop a smart contract that enables holders of BlackRock’s BUIDL and VanEck’s VBILL funds to exchange their shares for the RLUSD stablecoin seamlessly.
This benefits XRP because integrating with major asset managers, such as BlackRock and VanEck, helps solidify Ripple’s role as a bridge between traditional finance and cryptocurrency. Furthermore, as additional tokenized assets use RLUSD for settlement or redemption, transaction volume on XRPL could increase, benefiting ecosystem growth.
XRP-related data has seen a resurgence recently, suggesting a growing demand for the asset and increased network activity.
Figures released this week showed that the number of XRP payments from one account to another surpassed the milestone of 1 million for the first time since September 12th. Additionally, the number of active accounts executing transactions and the average number of transactions per ledger have also reached multi-week highs. Meanwhile, the total number of active accounts on the XRP Ledger recently surpassed 7 million.
Despite the recent revival in these metrics, Ripple prices have experienced a substantial pullback in recent weeks as the broader cryptocurrency market comes under pressure.
Interestingly, whales view this correction as an opportunity to buy up 30 million tokens in the last 24 hours. Such a move to reduce circulating supply could offer some stability to the price as long as demand doesn’t diminish further.
XRP/USDT technical analysis
XRP/USDT trades within a falling triangle pattern, testing the 100 SMA at 281. Sellers, supported by momentum, will look to break below the 100 SMA and 278 to break below the triangle pattern. Below here 2.60 comes into focus.
Should the 100 SMA support hold, buyers will need to rise above the 50 SMA at 3.00 to push the price towards 3.18, the September high.
Trading involves risk.
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