The XRP price has been on a downward trend in recent weeks, raising concerns among investors. The cryptocurrency has lost over 5% of its value in the past week, and is now trading below $0.50. Austin Hilton, a reputable crypto analyst, recently shed light on this intriguing development in one of his YouTube sessions.
What does the future hold for XRP? Let’s explore.
Looking at the Broader Picture
Hilton noted that the decline isn’t isolated to just XRP. Despite a concerning 5% drop for XRP, the wider crypto market hasn’t been performing stellarly either. Bitcoin and Ethereum have recorded declines of 6%. The analyst highlights that the reduction began when XRP took a plunge from the $0.50 mark to $0.47, registering a nearly 6% decrease.
According to Hilton, a closer look at the XRP and Bitcoin charts reveals that they echo each other in terms of movement. Both have recently sunk below their respective support levels. While Bitcoin bounced back from around $25,100 about three times, it has now hit the $24,950 range. Similarly, XRP was consistently hitting the $0.49 bracket before it slid to $0.46.
Read More: What’s Behind the Current Crypto Plunge? Here Are the Top 4 Reasons
September‘s Been Historically Bleak
Historically, September hasn’t been generous to the crypto market. Hilton recalls that in eight of the last ten years, September concluded with the market tinted in red.
The impending court decision on the FTX liquidation situation is another pivotal point for the crypto sphere, he says. This verdict could lead to the potential offloading of $685 million worth of assets. The court’s ruling might influence the fate of assets ranging from Solana and Bitcoin to Ethereum and others.
Here’s Another Perspective: September Doom to Present Massive Buying Opportunity for Bitcoin and Altcoins; Expert Maps Levels
Crucial Economic Data – How Does It Relate With Crypto?
Hilton stresses the importance of upcoming macroeconomic data. He mentions the Consumer Price Index (CPI) report, followed by Retail Sales Data. Additionally, in about nine days, the Federal Reserve FOMC meeting is scheduled.
The trajectories of Bitcoin and XRP are intertwined, and their charts bear striking resemblances. Thus, it’s important to not see XRP’s decline as an isolated incident but rather as part of the broader market dynamics.
Source: https://coinpedia.org/altcoin/why-xrp-price-is-dropping-analyst-uncovers-shocking-reasons/