Crucial level of support broken: Does XRP fall back to $ 2.80?

XRP started this month with a strong rally and rose above 3.30 dollars. In the meantime the coin has fallen hard. In 24 hours, XRP lost almost five percent and again dropped below the 3 dollar border. Investors are worried now that an important level of support has been broken.

Crucial support level for XRP broken

From 3 August the XRP rate rose from 2.77 dollars to a peak of $ 3.36. That profit has since been largely wiped out. On Thursday, the coin still held up around 3 dollars, but that level is now broken.

With the fall, the road seems free for a further correction towards $ 2.80. That was an important battery zone in earlier trade phases where many buyers entered. If the course does not know how to maintain that level, the downward pressure can increase further.

Inflation figures put pressure on the market

The negative sentiment is not only due to technical signals. The wider cryptomarkt is under pressure due to disappointing macro-economic figures. The American labor market shows weakness, which normally offers opportunities for interest reductions by the Federal Reserve (FED).

However, that hope got a blow because of the most recent figures from the producer Price Index (PPI). Inflation turned out to be higher than expected, which means that the chance of rapid interest rates shrink. The expectation of a reduction from 94.6 to 84.8 percent fell on the Futuresmarkt.

According to analysts from Barclays, the market also underestimates the caution of FED chairman Jerome Powell. That feeds the fear that the US central bank will hold on to higher interest rates. For risky assets such as crypto and shares, that is usually bad news.