As most of the major-cap crypto currencies are being deprived of their major support levels, the tarrifying experience of the broader crypto markets this Thursday has pushed market sentiment back to extreme fear levels.
Why Stock Market Crash Wonโt Spare XRP
After the United States President Donald Trump imposed a 10% baseline tariff on everything imported into the country, some specific territories got whipped even harder. To illustrate, China is facing a minimum tariff of 54%, while the European Union has 20% in response to the allegedly unfair taxation to the U.S. by the EU.
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Naturally, the strict market move has already wiped out billions in the market, with Bitcoin (BTC) witnessing a sharp drop from $88,000 to just above $81,000. The $7K Bitcoin dip was complemented with an up to 10% price drop for most mid to large cap altcoins, including the high-profile Ripple (XRP) coin.
According to Glassnodeโs stats, Ripple coin is among the hardest hit by the monthly market downturn, along with Dogecoin (DOGE) and the main competitor Solana (SOL). As the Percent Supply in Metric indicates, Ripple coin (XRP) slumped from over 90% to 81.5% over the past 7 days, while the cross-border altcoin dipped 14% in market value over the same time.
Price Roller Coaster Pushing XRP Below $2?
Todayโs crypto & stock market crash comes amid Dow Jones Industrial Average losing 1,064 points, while S&P 500 Futures and NASDAQ 100 Futures dropped by over 3%. As Rippleโs (XRP) chain is tied to various traditional banking institutions, thereโs a high chance of a domino effect, even though XRP bulls are still in control of the $2 key support area.
One great indicator of Ripple believers, popularly known as XRP bulls, not retreating just yet is the slightly positive Chaikin Money Flow (CMF). As portrayed in the XRP coin price chart above, the CMF meter recouped a positive figure of 0.01 today, despite starting April deeply below zero.
On the other hand, the current XRP coin price at $2.0420 has the OG altcoin floating just above the lower-tier Bollinger Band (BOLL), hinting at low XRP bull strength. Depicted in green color, the $2.0229 Bollinger Band works as the current support territory, while a break above the red label at $2.1818 would empower XRP coin bulls to flip the script bullish.
On The Flipside
- The utter belief in XRP coin price rebound has cost Ripple bulls nearly $13 million in leveraged position liquidations over the past 24 hours, CoinGlass data shows.
- Besides, XRP coin cannot get rid of the negative figures in the OI-weighted funding rate, hinting at waning interest in speculation over the OG altcoinโs price.
Why This Matters
Crypto markets have always responded to geopolitical tensions and global trade competition, with the strict baseline tariffs wiping out $140 billion in cryptoโs global market capitalization in the latest 24-hour time frame.
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