Ripple (XRP) holders brace for a potential drop to the key $2 support level after the cryptocurrency tumbled $0.50 yesterday. The sell-off came as investors reacted to the disappointing revelation that former President Donald Trump’s investment announcement was unrelated to cryptocurrencies.
Market Sell-Off Hits XRP Hard
Global financial markets faced intense selling pressure, with risk assets suffering steep declines. The Nasdaq ended nearly 3% lower, while the crypto market saw even sharper losses. Bitcoin plunged close to 10%, while XRP retraced nearly 20% from its recent high, erasing much of its early March gains. The bullish momentum that had fueled the rally quickly faded as sellers regained control.
XRP Fails to Sustain Rally After Nearing $3
XRP experienced a strong upswing at the start of March, surging nearly 50% from Friday’s dip below $2. The broader cryptocurrency market rallied, led by Cardano (ADA), which soared 200%. The surge was driven by optimism surrounding Trump’s announcement of a Crypto Strategic Reserve, hinting at potential institutional adoption of digital assets.
The rally pushed XRP above its 50-day simple moving average (SMA), briefly approaching the critical $3 resistance level. However, buyers failed to sustain the momentum, triggering a sharp reversal that sent XRP/USD tumbling below $2.50, with a low of $2.30.
Trump’s Semiconductor Investment Shakes Market Sentiment
Investor enthusiasm waned further after Trump unveiled a $100 billion investment by Taiwan Semiconductor Manufacturing Co. (TSMC) in U.S. chip production over the next four years. The announcement left crypto investors disappointed, as they had anticipated more details on the Crypto Strategic Reserve. The lack of clarity fueled another wave of selling pressure across the market.
What’s Next for XRP?
XRP now hovers near a crucial technical support level at $2. If buyers fail to defend this threshold, further downside could follow. However, a stabilization in market sentiment could trigger a recovery attempt. For now, XRP remains under heavy selling pressure, reflecting broader uncertainty across the financial landscape.
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