The Ripple price has plummeted to the lowest level since February as the stocks and cryptocurrency market fell. XRP is trading at $0.7010, about 23% below the highest point this month. It remains about 47% below the highest point in 2021, bringing its total market cap to about $33 billion. Other coins like Ethereum, Bitcoin, Solana, and Cardano have plunged.
The XRP price has plunged because of the ongoing concerns about the bond market. The ongoing bond sell-off has pushed yield prices to the highest level in years. The yields of the 10-year and 30-year are approaching the 3% mark. At the same time, there are signs that the yield curve inversion will continue for a while.
This performance has helped drag most cryptocurrencies and stocks down. The tech-heavy Nasdaq 100 index has fallen by more than 8% from this month’s highest level. Likewise, the Dow Jones and S&P 500 indices have not done well as investors anticipate a more hawkish Federal Reserve. The bank has already hinted that it will deliver several interest rate hikes this year.
Another reason why the XRP price has dropped sharply is the ongoing SEC vs Ripple case. The case is still dragging in court, and analysts expect the verdict to happen in this year’s second quarter. The most recent update about the case is that Empower Oversight released emails from the SEC. Empower is a non-profit that filed a FOIA request last year.
One of the emails shows that SEC’s ethics committee member cautioned an official about his conflict of interest in the case. In addition, he warned Bill Hinman about these conflicts of interest, which Ripple’s lawyers could use during the trial. Still, it is unclear whether Ripple will win the case, although some analysts expect that the judge will rule that XRP is a security.
The daily chart shows that the Ripple price has been in a strong bearish trend in the past few days. However, a closer look shows that this crash happened after the coin formed a rising wedge pattern shown in blue. A rising wedge is usually a bearish sign.
The coin has also moved below the 25-day and 50-day moving averages. The two have made a bearish crossover, signalling that the downward trend will continue. Therefore, the next key support level to watch will be at $0.62, the lowest level on February 24 this year.
This post was last modified on %s = human-readable time difference 08:02