XRP is facing a drop alongside the rest of the broader crypto market. In the last 24 hours, a total of $209.05 million has been liquidated as digital assets extended a downturn since the week’s start.
The release of a PCE report on Friday, regarded as the Federal Reserve’s preferred inflation gauge, did just a little to move the crypto markets. Core inflation was little changed in August, likely keeping the central bank on pace for an interest rate cut ahead.
XRP rebounded in Friday’s session, closing the day in green to reach a high of $2.81 before it started declining again.
At the time of writing, XRP was down 3.51% in the last 24 hours to $2.74 and down 9.49% weekly.
XRP price gap emerges
XRP has steadily declined since a high of $3.14 on Sept. 18. The price fell for five straight days at a stretch from this date; on Sept. 22, XRP saw a sharp drop from $2.97 to $2.69.
In another instance, XRP saw a price drop on Thursday from $2.94 to $2.72. The recent XRP price movement has created a price gap, which might attract liquidity, with price seeking to fill it up.
According to Ali, a crypto analyst, XRP has a price gap sitting between $2.73 and $2.51. At a current price of $2.74, XRP is sitting above this price gap.
Two scenarios might be likely: The price gap acts as a magnet, pulling XRP toward it in a bid to fill it up. Second, enormous buying pressure might emerge in the markets, dwindling the impact of the price gap, with XRP clearing it.
In the first scenario, major support is envisaged at the daily SMA 200 at $2.54; on the other hand, a decisive breach above the daily SMA 50 at $2.97 might kick-start a fresh upside move for XRP.
Source: https://u.today/xrp-surpasses-key-price-gap-what-could-happen-next