XRP Price Falls Below $0.60 Amid Bearish Market Conditions, Potential Causes Identified
XRP, a renowned digital currency, is experiencing a significant decrease in its value as it falls below the important $0.60 price mark. The recent challenges in the overall market have exacerbated XRP’s decline, leading people to closely examine the reasons behind its decreasing value.
XRP’s price has been declining recently due to several factors. One major reason is the overall downturn in the cryptocurrency market. This month, the value of most cryptocurrencies has dropped by 7.36%. Bitcoin, Ethereum, and Solana, among others, have all witnessed a decrease in their prices. Bitcoin’s price has fallen by approximately 6.70%, Ethereum by 8%, and Solana by 10%. This general market decline has also impacted XRP’s price, causing it to decrease by a similar percentage.
Furthermore, the recent downturn in the broader cryptocurrency market has been influenced by macroeconomic shifts, particularly in the United States. The change in the US Manufacturing Purchasing Managers’ Index (PMI) for March, from 52.2 to 50.3, has prompted traders to reassess their expectations of a potential Federal Reserve rate cut in June. As a result, the odds of a rate cut have decreased from 60% to 56.9%. Despite Federal Reserve Chair Jerome Powell’s comments last week suggesting that the Fed is not in a hurry to cut rates, this sentiment does not bode well for the crypto market. Investors are now moving their capital from cryptocurrencies to safer assets like bonds as they seek to avoid risks amidst economic uncertainties.
Another factor contributing to the bearish pressure on XRP is the distribution campaign carried out by whales and major institutions. Data from Santiment confirms that addresses holding significant amounts of XRP have been continuously reducing their balances since the beginning of the year. This includes addresses holding between 10,000 to 10,000,000 XRP tokens. For example, investors holding 10,000 to 100,000 XRP collectively had a balance of 6.86 billion XRP as of January 1st, which has now decreased to 6.77 billion. Similarly, addresses holding between 100,000 to 1,000,000 XRP have seen their balance decline from 6.72 billion to 6.63 billion XRP. This ongoing selling campaign by whales and institutions has added to the downward pressure on XRP as investors turn to other assets to avoid missing out on potential gains.
In terms of price analysis, while XRP has fared relatively better than the broader market during the current downturn, it still underperforms on a year-to-date basis. The token is currently trading at $0.5906, having fallen below the crucial support level of $0.60.