Ripple‘s XRP cryptocurrency appears to be succumbing to the broader cryptocurrency market downturn, mirroring the downward trend of Bitcoin and other major digital assets. Investors are bracing as the potential for a significant support breach could nullify the profits accrued over the month. Despite a recovering crypto market in the last few days, XRP has been on a downward trajectory.
XRP’s Market Challenges
The recent market slump has resulted in the loss of about 80% of XRP’s March gains, with the currency trading at $0.612. The decline has hit both investors and futures traders hard, with long positions suffering from significant liquidations that exceeded $4.47 million in a single day. This downturn may dampen investor confidence, reducing prospects for a price rebound, while technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest bearish trends ahead.
Technical Indicators and Whale Activity
An 8.5% drop in XRP price within 24 hours has market watchers cautious as the altcoin faces the likelihood of further decline, potentially slipping below $0.606. Such a fall would result in Ripple relinquishing its key 38.2% Fibonacci retracement support level. Moreover, a loss of support from the 50-day Exponential Moving Average (EMA) further compounds the bearish outlook. Unless the 100-day EMA support holds, further losses could erase the last two weeks of gains.
Interestingly, large-scale holders, or ‘whales,’ have been accumulating XRP despite the market’s negative signals. By purchasing over 50 million XRP in the past 48 hours, they’ve injected over $30 million into the market, possibly to stem the losses. Should this whale activity significantly influence XRP’s direction, there might be hope for the altcoin to stabilize and even attempt a recovery above the critical $0.606 support threshold.