XRP loses critical support, how far can it fall?

XRP is one of the cryptocurrencies affected by the tide that painted red to the market of digital assets.

With this fall, the cryptocurrency issued by Ripple Labs lost the level of 3 dollars and is currently negotiated in $ 2.90.

Thus, XRP lost a “critical support” of 2.98 dollars, a level that was key for the asset to maintain the upward trend, as explained by an analyst from the TrainingView community.

The following graph shows how XRP’s behavior has been throughout the current year:

As seen in the previous image, the next support (violet rectangle) is in the range between 2.80 and 2.75 dollars, a level that previously stopped falls and could return to act as a floor for XRP if the bearish trend continued.

In this way, it would prevent the price of the third most valuable asset on the market He suffers a deeper correction and could then recover the bullish impulse.

Jainam Mehta, financial market analyst, highlights the importance of XRP maintaining the level of 2.74 to $ 2.80 because “it is the line that defines whether the asset maintains a constructive base.” In addition, he says: “Unless XRP falls below this level, buyers can continue to defend the structure. However, a decisive closure above $ 3.06 is the true necessary signal for the bulls to recover a broader control.”

For this to happen, XRP depends on positive macroeconomic news. For example, that the United States manages to realize a trilateral meeting with Vladimir Putin and Volodimir Zelensky to agree on a high fire in the war between Russia and Ukraine, or that Jerome Powell, president of the Federal Reserve (Fed), anticipates a cut of fees in the speech that will give this Friday in the symposium of Jackson Hole.

As Cryptonoticias has reported, the head of the Fed will be the main protagonist of the event that brings together central bankers, finance ministers, economists and investors. The market focus will be put in the speech it will provide this Friday, August 22.

The markets will be attentive to Powell’s speech to anticipate Fed decisions. It is expected to maintain a prudent tone, which reinforces the bearish vision, although an advance of rate cut could generate a bullish effect and volatility in the day.

This is important because, when the interest rate drops, the cost of financing also decreases and, therefore, there is more liquidity in the system. It is then that the appetite of investors is awakened for risk assets that generate greater returns, but are more exposed to market volatility, such as cryptocurrencies.

Although it is in the background, another active price catalyst is The possible approval of the Bolsa -listed funds (ETF) of XRP in the United States. Companies such as Grayscale, Bitwise, Canary Capital Group, Coinshares, 21Shares and Wisdomtree have submitted their corresponding applications before the agency that Paul Atkins presides and are waiting for a resolution.

The latest novelty about the XRP ETF is that the SEC postponed until the end of October the response for the applications presented by Coinshares.

The launch of these regulated products will give more visibility to the asset among more traditional investors and will facilitate the entry of corporate and business capital. This is because its operation is very similar to that of a stock market action.

Another bullish factor is the bank alliances that Ripple is forging. On July 9, the firm that Brad Garlinghouse leads announced that Bny Mellon, the oldest financial entity in the United States (founded in 1784), will act as the main custodian of the reserves of its stablecoin Ripple Usd (RLUSD), with the aim of facilitating the institutional adoption of digital assets.

On July 2, meanwhile, Ripple submitted a request to obtain a national banking license in the United States, which would put RLUSD under supervision of the Office of the Comptroller of La Moneda (OCC). If approved, market confidence in stable currency could be strengthened.

If these presentations obtain green light, and the macroeconomic context accompanies, The XRP price will easily quote above $ 3 In the short term.