XRP Price Prediction As $1.5 Billion Trading Volume Comes In – Are Whales Buying?
The sixth largest crypto is hanging on the edge of a cliff as uncertainty in the market increases, especially from the US. Despite the total market capitalization slipping below $1 trillion to stand at $963 billion on Saturday, the XRP price is relatively unchanged in 24 hours, trading at $0.3691.
Crypto Market Overview – Can XRP Price Bounce Back?
It has been another difficult week in the crypto market due to worsening economic conditions and regulatory pressure from US agencies. The collapse of Silvergate Bank last week hinted at the specters of the messy implosion of FTX exchanges coming back to haunt the industry.
In other recent news, Circle’s USDC stablecoin is nosediving and diverging from its dollar peg amid panic over the collapse of another banking unit SVB Financial Group. SVB is a subsidiary of California-based Silicon Valley Bank.
The second largest stablecoin is reportedly suffering from contagion after the second US bank that collapsed in March 2023. USDC is holding at $0.9052 according to live price data from CoinGecko, a number that is significantly lower than the expected value of $1.
About $3.3 billion in USDC cash reserves may be in SVB’s custody, raising concerns among investors about Circle’s ability to fully support the $37 billion stablecoin. Stablecoins have become a fundamental part of the crypto industry and are gradually finding a foothold in the traditional banking sector.
Remember the May 2022 collapse of TerraUSD and the carnage that followed across the market. Crypto giants such as Voyager Digital, Three Arrows Capital and Celsius were unable to survive the crash, resulting in a series of bankruptcies.
The possibility of a weekend sell-off cannot be taken off the table, with investors likely to panic due to contagion from another stablecoin crash. However, data shared by Wu Blockchain on Twitter suggests “the actual risk exposure may only be a small amount of funds.”
That said, investors should pay close attention to the events surrounding the USDC and SVB over the next few days as they will likely help determine where the crypto market is headed.
XRP price needs this support to bounce back
The XRP price appears relatively stable as it trades at $0.3691 during the European session on Saturday. The aggressive push from the bulls in January drove the cross-border token just above $0.40 before the bears took over the reins in early February.
A look back at the XRP price last September reveals its upper control point at $0.50. On the flip side, the downside control point is at $0.30. Also, XRP lost steam during the rally in January after meeting the multi-month trend line – pulled from September’s high of $0.56.
While an immediate rally in the XRP price would be a pipe dream, given the many unfavorable conditions in the crypto market, much focus can be placed on the bull’s ability to find support and sustain it, at least this weekend.
That said, the pressure mounting atop the $18.5 billion crypto can’t be understated, considering the loss of key influencers who briefly entered the picture in January.
For example, XRP is now holding below all the major moving averages in use, including the 200-day exponential moving average (EMA) (line in purple), the 100-day EMA (line in blue), and the 50-day EMA (line in red).
The next preliminary support will be provided by the buyer overload at $0.35. Keeping this support intact is essential for immediate resumption of the uptrend. Otherwise, XRP price may drop to test $0.30.
Two outcomes would be expected at $0.30, with the first allowing the XRP price to take advantage of the new liquidity and aggressively push for a trend reversal. On the other hand, trading below the same control point can trigger another selloff when all hell breaks loose in front of the bulls. Declines below $0.30 may be unstoppable until XRP reaches $0.25.
Why falls in XRP price are unstoppable
Almost all major technical indicators used in this analysis paint a gloomy picture for XRP price, which is likely to last beyond the next few sessions – and possibly days. First, the Moving Average Convergence Divergence (MACD) indicator provides a live sell signal, as confirmed on Thursday, March 9, 2023.
In addition to that, the MACD is now holding below the 0.00 midline and exploring the negative region. If support at $0.35 does not hold, XRP price will have no choice but to seek refuge towards the next key level of $0.30.
The position of the Money Flow Index (MFI) reinforces the notion that the increase in trading volume is mainly coming from selling activities and that the XRP price lacks enough momentum and liquidity to reverse the trend, at least for now.
Investors looking to take long positions in XRP may want to wait until the token confirms support and begins to bounce back. If support at $0.35 halts the downtrend, traders will target $0.38 and $0.40 respectively, with the move to $0.56 still possible in the coming weeks.
Buy XRP now.
XRP options to buy today
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