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The crypto market's bullish momentum began to lose grip as the crypto market cap tumbled from $2.34 trillion to $2.13 trillion, causing investors to lose another $210 billion after a $274 million liquidation in the last few days. XRP, as a result, has experienced a significant decline in price, alongside other cryptocurrencies, as Bitcoin retraces to $56,555.29.
XRP/USD 24-hour price chart (source: CoinMarketCap)
At press time, XRP was down 3%, with bears having the upper hand and as a result, trading at $0.4879. Concurrently, XRP's market capitalization dipped by 2.97% to $26,957,154,188, while the trading volume surged by 58% to $1,670,539,099. This surge in trading volume suggests that the traders are taking advantage of the dip to accumulate.
The recent downturn in the cryptocurrency market has seen XRP sliding under key support levels, triggering concerns among investors. The price of XRP has dipped below the $0.5 mark, leading to further losses with potential support levels at $0.48 and $0.45. Technical indicators such as the Relative Strength Index (RSI) suggest a downward trend for XRP in early May.
The ongoing Federal Open Market Committee (FOMC) meeting adds to the uncertainty, with market participants closely monitoring its outcomes for potential impacts on XRP and other cryptocurrencies.
The FOMC meeting, set to conclude on May 1, is a significant event for the cryptocurrency market as it deliberates on interest rates in the United States. While expectations point towards the Fed maintaining steady interest rates, investors are keen on any indications regarding the central bank's response to inflationary pressures, particularly in light of recent Consumer Price Index (CPI) data.
Any hints of a delayed rate cut amidst rising inflation could influence market sentiment, potentially affecting the price of XRP and other cryptocurrencies.
The broader crypto market has been experiencing turbulence, with the aftermath of the Bitcoin halving and concerns over inflation contributing to market uncertainties. Despite optimistic forecasts following the Bitcoin halving, the reality has been a correction in prices, with Bitcoin witnessing a significant drop from its all-time high in March. Ethereum and other leading altcoins have also been affected, reflecting the overall bearish sentiment in the market.
XRP/USD 24-hour price chart (source: TradingView)
For investors considering buying XRP, the current downturn presents a potential opportunity, as the token is trading at a discount compared to previous months. However, trading volumes indicate a prevailing intent to sell among traders, with XRP's market cap also experiencing a decline. Key support levels at $0.48 and $0.45 will likely play a crucial role in determining XRP's price direction in the near term.
XRP's technical indicators suggest the possibility of further losses, with a retest of support levels at $0.48 and $0.45 anticipated. Breaking below these levels could trigger a larger sell-off, potentially pushing XRP's price towards $0.42 before resuming an uptrend.
However, reclaiming support at $0.5 could offer temporary relief to investors and pave the way for a potential upswing towards $0.75 and $1 in the future. The outcome of the FOMC meeting and broader market conditions will likely influence XRP's price trajectory in the coming days.
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