$250 million worth of funds were wiped out from the cryptocurrency market on Wednesday. Bitcoin dipped to the $99,000 level, spreading panic among the investor community. Ethereum is at the $3,300 level and both fell close to 5% in the day’s trade. On the other hand, XRP is now at $2.2 and is at its monthly low. Bears are in charge while the bulls are struggling to make the altcoin scale up the charts. At one point, it dipped to $2.16 range after dropping 7% in value.
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Is XRP in Big Trouble?
Even if we keep aside Wednesday’s market crash, XRP failing to reclaim the $2.7 level might spell doom for the altcoin. While a fall is quick, a recovery takes a longer time from here due to the market dynamics. The latest sell-off came after the Federal Reserve’s 25-basis-point rate cut. In addition, the US government shutdown is set to surpass 35 days and has deepened market pessimism.
Leading pseudonymous cryptocurrency analyst AltCryptoGems, with nearly half a million followers on X, warned that XRP could be in real trouble if it fails to reclaim the $2.7 level. Its litmus test begins now, and if the bulls don’t step in, chances of falling to $1.9 remain high.
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“XRP looks a bit in trouble, kind of confirming a further lower high here on this rejection at $2.7,” he said. “Should this lower high be confirmed, we could be in danger of visiting that lower support level. Right now, bulls have only one task: reclaim that $2.7; otherwise, we might be in real trouble!”
The leading altcoin is struggling to climb above the $2.5 mark, and $2.7 now seems a bigger task. If the markets don’t recover this week, XRP could be in danger of falling to $1.9 range. It is advised to remain on the sidelines this week before taking an entry position.