The rate of Ripple (XRP) is under pressure. Where the coin reached a local peak of 2.62 dollars in mid -May, XRP currently notes 2.16 dollars. That is a decrease of no less than 17.5 percent in just over two weeks. What is behind this price pressure?
XRP price touches support level at $ 2
Last week shows a clear down pattern. This makes XRP almost back to the level at which the month of May started. Nevertheless, there has been recovery since the beginning of April, when XRP dropped below $ 1.65 during the peak of the rates between China and the United States.
Technical indicators now point to weakening. For example, XRP has fallen below 20 and 50-day advanced averages, which are currently at $ 2.34 and 2.30, respectively. This contributes to the negative market sentiment and can provide more sales pressure, for example because traders go short or take a profit earlier.
The psychological level of 2 dollars now acts as crucial support. A relapse to that point means an extra loss of around 7.4 percent. If the XRP price also drops below that limit, deeper corrections can follow to the April price area.
Tensions between US and China are increasing
The immediate reason for the fall in price seems to be geopolitics. The negotiations between the United States and China are in heavy weather. The American Minister of Finance, Scott Bessent, announced on Thursday that the conversations were “a bit stuck”. Shortly thereafter, the 47th President of the United States, Donald Trump, accused China through Truth Social of violating agreements.
Although the tensions had declined slightly in April, the flaring of rhetoric is now again causing nervousness on the financial markets. Investors seem to be more careful for the time being. We see that in the race of Bitcoin (BTC), but especially at Altcoins such as XRP.
Source: https://newsbit.nl/xrp-koers-zakt-17-in-2-weken-verdere-daling-hangt-in-de-lucht/
