XRP has faced significant selling pressure, with its value dipping approximately 5% on Tuesday to near $1.09. Over the past week, the cryptocurrency’s losses have exceed 10%, and over the past month, it has declined roughly 20%. The failure to break above the crucial $1.30 resistance level has seen XRP slipping towards the $1.00 support zone, a critical threshold closely monitored by traders.
XRP Struggles Under Widespread Crypto Selling
Yes, XRP has been especially vulnerable to widespread market sell-offs. As Bitcoin plunged below $65,000, triggering about $700 million in market-wide liquidations, XRP—characterized by its high volatility—suffered more acute declines than many other digital assets.
Broader market dynamics have further compounded the situation. The US Federal Reserve’s recent policy update has shifted expectations from potential rate cuts to the possibility of further hikes, pushing the dollar higher. Subsequently, risk-averse investors have been pulling out of cryptocurrencies in droves.
Bitcoin falling below $65,000 triggered roughly $700 million in forced liquidations across the market, with the downward pressure especially evident in XRP’s performance.
Are Institutional Investors Still Interested?
Yes, institutional interest remains. Despite the downturn, XRP-focused ETFs saw net inflows of $5.31 million on June 22, primarily driven by Bitwise, marking the seventh consecutive week of positive flows. Aggregate monthly inflows have surpassed $29 million.
Additionally, cumulative ETF inflows have reached $1.45 billion, while average assets under management stand at $993 million. As some XRP supply transfers to ETFs and cold storage, exchange balances have hit multi-year lows.
Strategic insights from the article reveal:
- XRP is trading well below crucial moving averages: 50-day ($1.25), 100-day ($1.35), 200-day ($1.56).
- Key support levels lie at $1.07, $1.05, and $1.00.
- Resistance areas are identified at $1.15, $1.22, and $1.25 as potential rally reversal zones.
- Open interest in XRP futures has seen an uptick, reaching $2.69 billion from $2.55 billion.
Meanwhile, Ripple has made inroads in the European market by securing a conditional preliminary approval for a CASP license from Luxembourg’s financial authorities under EU’s MiCA regulations. Though requiring further regulatory compliance, Ripple’s strategic move aims to solidify its presence across European markets.
