Ripple's XRP fell from yesterday's peak at $1.11 to $1.05 as the entire crypto market turned red, losing over $80 billion in market cap from top to bottom. The token gave up a support zone that had held for most of July, and ETF net inflows of under $600,000 did little to cushion the drop.
Ripple's XRP dropped from yesterday's peak at $1.11 to $1.05, a decline of 4.5% on the day. Monday's rally did not last: the entire cryptocurrency market turned red, with the market cap losing over $80 billion from top to bottom.
The sell-off runs market-wide
XRP's slide is not an isolated case, because the cross-border token tends to follow the overall market trend. Bitcoin led the move down, diving from $65,600 to $63,000.
Investors appear to be reducing their exposure to risk-on assets like crypto ahead of the next Federal Reserve FOMC meeting. The US central bank announces its interest rate decision tomorrow evening, and according to some reports there is an actual chance of a rate hike despite easing inflation in June.
A crucial support zone gives way
The rejection at $1.11 and the subsequent decline meant XRP lost a crucial support zone at $1.08-$1.10, which had halted its free falls for most of July. Beyond that technical side, the drop triggered a large wave of liquidations, which created the snowball effect of a more profound decline.
ETF net flows remained in the green. However, the figure was a very modest under $600,000, evidently not sufficient to help XRP avoid such price losses.
Analysts watch leverage and a tight range
The daily leg down has not changed popular analysts' opinion on XRP's claimed bright future. Xaif Crypto acknowledged the rising leverage and XRP's tight trading range, and the market observer commented that "two-sided liquidations are getting hit on both longs and shorts," which, aligned with neutral funding and drying up spot liquidity on Binance, will likely lead to a much bigger move soon.
CasiTrades again expects the next XRP wave to be violent. The analyst noted that XRP has returned to macro support, which, if broken to the downside, will likely lead to a more painful decline to $0.87, the targeted bottom.
Source: CryptoPotato
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