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The cryptocurrency market faced a significant setback recently, with XRP plunging below the $2 mark for the first time in weeks amid widespread sell-offs.
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The decline in XRP is emblematic of a larger market trend, as investors react to shifting economic indicators, particularly in anticipation of crucial inflation data.
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“XRP needs to reclaim the daily SMA 50 at $2.72 to regain bullish momentum,” notes a recent report from COINOTAG.
The crypto market encounters a turbulent downturn as XRP dips below $2 for the first time in weeks amidst considerable liquidations.
XRP’s Performance Amid Market Turmoil
As the fourth largest cryptocurrency, XRP has experienced a dramatic drop in value, falling below the critical $2 threshold this week. This decline is part of a broader market downturn that has seen many digital assets suffer significant losses. The latest figures indicate that XRP was trading at $2.04 after an initial drop to $1.95, reflecting an 8.35% decrease over a 24-hour period.
Market Liquidations and Investor Sentiment
Recent data from CoinGlass highlights a staggering $952 million in crypto liquidations within just 24 hours, driven largely by bearish market sentiment and heightened volatility. Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have similarly experienced sharp declines, contributing to a cumulative market capitalization loss of over $1.1 trillion, bringing the total down to approximately $2.67 trillion. Importantly, BTC, which briefly fell below $79,000, has seen a significant drop from its earlier high of over $109,000.
Factors Influencing the Market Decline
The crypto market’s recent turbulence can be attributed to investor apprehension surrounding upcoming economic data, particularly the Personal Consumption Expenditures (PCE) report that plays a pivotal role in shaping the Federal Reserve’s monetary policy. Scheduled for release ahead of the Fed’s upcoming meeting on March 18-19, the PCE data is crucial as it informs decisions related to interest rate adjustments.
Support and Resistance Levels for XRP
Amidst this backdrop of uncertainty, XRP is currently consolidating between its daily moving averages, with key support levels situated at $1.50 and a critical resistance level at $2.72. To regain lost ground, it will be essential for XRP to break through the daily SMA 50, which has transformed from a support level into resistance amid falling prices. If the selling pressure persists, further declines could test support at $1.72 and further down to the daily SMA 200.
Conclusion
The current state of the crypto market, particularly for XRP, reflects a significant challenge amidst wider economic concerns. With upcoming inflation data poised to influence market dynamics, investors will be closely watching market movements. The overall sentiment remains cautious, as traders navigate through this volatility, and it remains to be seen whether bullish momentum can return in the coming weeks.
