XRP’s price has dropped by more than 9% and is currently trading at $1.78. This decline is in line with the overall struggles in the cryptocurrency market, where major cryptocurrencies are also facing declines due to tensions in the US-China trade war.
Yesterday, Ripple made headlines by acquiring a prime broker, which was seen as a positive move for the project. However, the short-term price movements of XRP are still heavily influenced by Bitcoin’s performance and the stock market. Despite a slight bounce at the end of the stock market session, the overall market was bearish, which directly impacted XRP’s price.
XRP has been struggling to reclaim the crucial $1.95 to $2 level, which is a significant resistance zone. While it is possible for XRP to eventually push past this level, it largely depends on Bitcoin’s performance as XRP’s correlation with BTC remains strong at 85%. After being rejected from $1.95, XRP dropped to a local support level around $1.75, where it has managed to hold steady and show some volume support.
In the short term, XRP is retracing and approaching a key support level between $1.74 and $1.75. While there may be a bounce from this support zone, the overall trend remains bearish as lower highs and lower lows continue to form within a descending parallel channel.
The key downside targets for XRP include the $1.60 range and the $1.74-$1.75 support zone. Traders should closely monitor these levels as potential points for further price action or reversals.
FAQs:
1. Why is XRP price dropping today?
XRP’s price is down over 9% due to broader crypto market weakness tied to US-China trade tensions and Bitcoin’s poor performance.
2. How is XRP correlated with Bitcoin?
XRP has an 85% correlation with Bitcoin, meaning BTC price trends heavily influence XRP’s short-term movements.
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