- XRP risks midterm drop toward $1.9 support after falling below key $2.7 level.
- XRP follows Bitcoin’s downtrend after losing key 50-week SMA support.
- U.S. shutdown delays XRP ETF approval; Evernorth faces $79M losses.
XRP price is on the cusp of further midterm capitulation. Crypto analyst Ali Martinez said the XRP price is likely to retest the support range between $1.9 and $2.
The crypto analyst noted that the XRP price has been ranging between $3.4 and $1.9 year-to-date (YTD). Having recently dropped below the support/resistance level around $2.7, which coincided with the 50-weekly Simple Moving Average (SMA), the crypto analyst now thinks XRP price is headed to retest its lower border of the YTD horizontal consolidation in the coming weeks.
Three Reasons Why XRP Price Could Sink Further in the Coming Weeks
XRP Remains Closely Tied to Bitcoin’s Trend As BTC Trades Below Key Bull Market Support
XRP price has moved more or less the same as the Bitcoin price in the past three months. With the Bitcoin price having dropped below its weekly 50 Simple Moving Average (SMA), a strong bull market support, more bearish sentiment is likely ahead. Notably, the XRP price has also dropped below the 50-weekly SMA.
Top Crypto Analyst Leads in Midterm Fear of Further Altcoin-Led Bloodbath
With the low crypto liquidity inflows, caused largely by the ongoing U.S. government shutdown, more market analysts have turned midterm-bearish. According to crypto analyst Benjamin Cowen, a crypto trader and influencer, the altcoins are likely to bleed their liquidity to Bitcoin as fear of further capitulation surges. He noted, “Altcoins will likely drop another 30% against Bitcoin over the coming weeks.”
According to CoinMarketCap’s Crypto Fear and Greed Index, the fear of further bloodbath liquidations is real. At press time, this index hovered around 25/200, which is almost nearing its yearly low of 15/100.
As such, XRP price is more likely to drop further in the midterm, fueled by potential long squeezes ’ impacts.
ETF Approval Delays and Institutional Losses Add to XRP Market Pressure
The possible launch of spot XRP ETFs in the United States has sparked bullish expectations. However, the ongoing U.S. government shutdown has delayed regulatory reviews, pushing back the expected approval timeline. Meanwhile, the recently launched Evernorth XRP treasury company is currently sitting on unrealized losses of nearly $79 million.
Related: XRP Price Prediction: Consolidation Near Support Hints at Potential Rebound
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Source: https://coinedition.com/xrp-price-faces-deeper-correction-analyst-warns-of-1-9-retest-ahead/