XRP, the cryptocurrency from Ripple Labs, has been facing a rough week. Its price has dropped by 8%, partly because of the latest Federal Reserve policy meeting. Many traders are now watching closely to see if it can hold onto its key support level at $1.90.
Markets have been more unpredictable recently, which is causing concern for cryptocurrency investors. XRP’s price behavior, market data, and other signals suggest that prices might stay stuck in a narrower range for a while.
Current Market Behavior
At the time of writing, XRP is priced at $2.01. This is a loss of 4% over the past 24 hours and 8% over the week. For months, its price has been fluctuating between $1.90 (support level, or the lowest price it might hold) and $3.60 (resistance level, or the price it struggles to move beyond). Although XRP has tried climbing higher than $2.10 several times, sellers come in strong around that area and push the price back down.
Experts are using tools like the Relative Strength Index (RSI) and Stochastic RSI to study these price movements. The RSI is currently at a value of 39. This means XRP’s price has fallen, but it’s not in a danger zone where many traders think it’s undervalued. Meanwhile, the Stochastic RSI shows that XRP might be oversold. When something is oversold, traders often believe it’s a better time to buy, as the price could bounce back soon. If XRP can stay above the $1.90 mark, some traders think that might lead to a reversal, meaning the price could rise again.
$XRP: Markets usually get shaky after the FOMC meeting, and we’re seeing that now. Prices are compressed, and the Stoch RSI shows it could be oversold. If prices drop further near $1.90, it’s not a bad thing—it could also be a good buying opportunity.
— ChartNerd (@ChartNerdTA)
Bitcoin’s Impact on XRP
Crypto analyst CRYPTOWZRD pointed out that XRP’s struggles are closely linked to Bitcoin’s recent drop during the Federal Open Market Committee (FOMC) meeting. This event has affected all cryptocurrencies, causing temporary instability. Bitcoin impacts XRP because it’s the largest and most well-known cryptocurrency. When Bitcoin drops, it can reduce confidence across the market, affecting smaller cryptocurrencies like XRP.
They believe XRP will stabilize and recover once Bitcoin starts holding steady, and fear among investors begins to fade. Right now, $2 is considered an important short-term support level for XRP. If it falls below $2, it might test $1.90 next. On the other hand, the next strong resistance level is $2.30. XRP would need to rise past that point to show signs of gaining strength.
Insights from Network Activity
Another analyst, Steph Is Crypto, shared that activity on the XRP network is slowing down. The number of active addresses (unique wallets interacting with XRP) is now at its lowest in three months, with only 37,088 active users. But there’s still some good news. Recently, U.S.-based XRP-focused exchange-traded funds (ETFs) saw $190 million come in. This shows that bigger investors like institutions are still interested.
Also, fewer XRP tokens are available on exchanges. This could mean people are holding onto XRP instead of selling it. Over the last two months, 1.35 billion XRP were removed from exchanges, leaving supply lower at 2.6 billion tokens. However, it was reported that some major holders sold off over 500 million XRP in one week. This selling caused XRP’s value to drop further.
XRP’s price and network data continue to send mixed signals. While some large investors are selling, institutions buying into ETFs show long-term interest. As market uncertainty grows, holding above the $1.90 support level will be critical for XRP.