Ripple (XRP) Price Retreats Amid Market Uncertainty
The price of Ripple (XRP) is currently experiencing a pullback, trading around $3.09 on Thursday. An earlier attempt to breach the resistance level at $3.32 failed, indicating weaker retail demand and a shift in market sentiment. This follows the U.S. Federal Reserve’s (Fed) interest rate decision on Wednesday.
Fed Chairman Jerome Powell’s remarks left investors with lingering questions, as the central bank maintained a hawkish stance on interest rate cuts. Powell emphasized that the Fed will continue its “wait-and-see” approach, closely monitoring incoming data amid the anticipated impact of higher tariffs taking effect on Friday.
XRP Struggles to Hold Support Amid Tariff Concerns
The deadline for President Donald Trump’s tariffs is fast approaching, with countries lacking signed trade agreements facing increased export taxes starting Friday. Despite aiming for over 200 trade deals, the White House has only managed to secure eight, including a significant agreement with the European Union (EU) earlier this week, according to CNBC.
Trade negotiations with China remain ongoing, with little indication of a near-term resolution. High-stakes discussions between the two economic powerhouses have frequently encountered roadblocks, particularly during recent talks in Stockholm, which concluded without a breakthrough. The current truce is set to expire on August 12.
Cryptocurrency market investors are on high alert, mindful of the sell-off that followed President Trump’s “Liberation Day” tariff announcement on April 2. With no signs of another extension, traders are bracing for potential volatility heading into the weekend.
Interest in XRP has waned since its all-time high of $3.66, reached on July 18. According to CoinGlass, the open interest (OI) of futures averaged $8.4 billion on Thursday, a 23% decrease from its yearly peak of $10.94 billion, recorded on July 22.
Given that OI represents the notional value of outstanding futures or options contracts, a sustained decline suggests a lack of conviction in the token’s ability to maintain its upward trajectory. Furthermore, there’s a general decrease in leveraged long positions, making XRP vulnerable to increased supply as profit-taking activities rise amidst reduced buying pressure.
Technical Outlook: XRP Buyers Defend $3.00 Support
XRP’s price is holding above the $3.00 support level at the time of writing on Thursday, as bulls are acting swiftly to prevent further decline. The token’s technical picture on the daily chart leans bearish, characterized by a sell signal triggered by the Moving Average Convergence Divergence (MACD) indicator on Friday.
If investors reduce their exposure due to the MACD indicator descending towards the midline and the blue line remaining below the red signal line, selling pressure could overwhelm demand, which has significantly diminished, as evidenced by the Relative Strength Index (RSI) extending its decline towards the midline.
Key areas of interest for traders are the $3.00 support and, by extension, the $2.95 level, which was tested on Thursday. The 50-day Exponential Moving Average (EMA) at $2.77 is positioned to provide support should selling pressure intensify. However, a recovery could establish itself above the $3.00 support, bringing the next key obstacle to $3.32 and the all-time high of $3.66 into the bullish realm.
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