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Cryptocurrencies, including XRP, are down in the early Wednesday session as fresh selling pressure emerged on the markets. Bitcoin (BTC) and major cryptocurrencies dipped over 3% as profit-taking ensued after Tuesday's rally. XRP followed a similar trend, dropping 4.55% in the last 24 hours to $2.07.
XRP showed steady declines since April 13, with the price marking two out of three days in losses; nonetheless, it remains up 14% weekly. Fundamentals improved, however, as exchange-traded fund (ETF) provider ProShares amended its spot XRP ETF (to be launched in the United States) filing on Tuesday, aiming for an April 30 debut date.
As it stands, the market is paying careful attention to XRP's price behavior at $2, a significant psychological and technical support zone for XRP. Holding above it may indicate strength and spark a potential bounce. However, losing it may open the door to additional declines, potentially driving XRP near the $1.61-$1.72 support zone, where buying interest has previously emerged.
On the contrary, if the bulls can defend the $2 level and buying volume returns, XRP could rebound toward the $2.23 barrier, which coincides with the daily SMA 50 in the short term. However, a break below $2 may result in further downside pressure, especially if the broader market fails to stabilize.
Markets on edge
The sentiment on the equity and cryptocurrency markets turned sour late Tuesday as Nvidia shares fell in after-hours trading, with the sell-off extending into the early Wednesday session. In the last 24 hours, the crypto market has faced $240 million in liquidations, according to CoinGlass data.
On Wednesday, the market will await the U.S. retail sales report and Federal Reserve Chairman Jerome Powell's speech for additional economic insights.
The March retail sales report from the United States will be released Wednesday morning, Eastern Time. Dow Jones economists predict consumer spending to rise 1.2% in the month, up from 0.2% in February.
Chairman of the Federal Reserve Jerome Powell is slated to speak at the Economic Club of Chicago on Wednesday about his outlook for the U.S. economy.
BTC
Vladislav Sopov