XRP is experiencing significant losses on Friday after dropping to its lowest value in the last seven days. The price decline comes amid the sharp rise in trading volume over the last 24 hours.
The altcoin opened Friday at $2.96 and plummeted as selloffs started. It is seeing the same level of selling pressure as Monday and is down by almost 6%.
Nonetheless, the 4-hour chart shows a small attempt at buyback in the session starting at 8:00 UTC. The coin continued to fall downwards after that trial. However, XRP is trading at a critical mark at the time of writing.
Aside from the losses in the spot market, traders in the derivative market are seeing massive liquidations. Over the past 24 hours, they incurred losses exceeding $543 million, with bulls accounting for $449 million of the total.
Nonetheless, these participants also lost significant funds trading XRP. Total rekt capital on the coin was almost $23 million, and the bulls accounted for more than 90% of the losses.
Donald Trump is at it again, introducing fresh tariffs. The U.S. has scrapped the old “de minimis” rule, which allowed packages under $800 to enter duty-free. That means cheap online orders from sites like Shein and Temu will now cost more, adding an estimated $13 billion in extra fees and pushing up prices.
The release of the core PCE also sent shockwaves across the crypto market. It arrived as expected, but it reflects rising inflation. These two announcements were the reason for the massive selloffs across the market.
XRP at Make-or-Break Level
The 1-day chart shows that the altcoin is trading at a critical level at the time of writing. It dropped to a low of $2.77 a few minutes but rebounded. The 4-hour chart indicates that the bulls are maintaining prices near $2.80.
However, indicators and previous price movements differ in their predictions for how prices will unfold in the coming days. One the 24-hour timeframe, this marks the fifth time XRP has tested $2.80 this month. The consistent retest of this level is cumulating into a bearish chart pattern.
A look at the above image reveals a descending triangle that began in mid-July. The altcoin registered lower highs and maintained a nearly identical low. This chart pattern suggests an impending breakout, but downward. To prevent such declines, the bulls must maintain prices near $2.80.
However, the relative strength index is neutral. It is at 41, indicating the possibility of another downswing.
Nonetheless, the bollinger bands indicate a high chance of rebound. The coin dropped to the lower band a few hours ago and retracing to this level mostly shows the end of a downtrend. If this holds, XRP will surge, reclaiming $3.
Recovery Underway
The 4-hour chart shows that recovery is underway. Its latest candle reveals that the asset dropped to a low of $2.77 but is recovering, trading at $2.81 at the time of writing.
Nonetheless, the chart also revealed that the coin dropped to bollinger’s lower band a few hours ago. A closer examination reveals that the slip occurred during the session starting at 8:00 UTC. Traditionally, retracing to this level mostly signifies the end of a downtrend. If this holds, XRP will surge, reclaiming $3.
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