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The crypto market is mostly trading in red on Monday, with $745 million recorded in liquidations in the last 24 hours.
XRP reached a low of $1.83 early Monday after dropping to $1.80 on Sunday as crypto markets fell in thin weekend trading, extending a pullback that has dragged on since the past week.
At press time, XRP was down 0.70% in the last 24 hours to $1.88 as cryptocurrencies fell ahead of a busy week, with the Federal Reserve's two-day FOMC meeting starting on Wednesday and major technology players announcing earnings.
The Federal Reserve is set to announce its rate decision, with investors expecting it to leave rates unchanged. However, traders will be paying very close attention to Chairman Jerome Powell's post-meeting press conference, which presents the real intrigue.
After delivering three back-to-back quarter-point cuts, the central bank is expected to hold steady on Wednesday.
Amid the sell-off, XRP trading volume rose 214% in the last 24 hours to $3.34 billion, according to CoinMarketCap data.
What's next for XRP price?
XRP fell for four straight days in a row, reaching a low of $1.80 on Sunday. The drop coincides with outflows from XRP ETFs.
According to Sosovalue, spot XRP ETFs saw about $40.6 million in weekly outflows, suggesting institutional profit-taking.
XRP's price drop however, presents a silver lining, with the MVRV indicator now suggesting it to be undervalued.
The MVRV for XRP has fallen into the negative, currently at -5.7%, which suggests being undervalued.
The XRP price seems to be building a base near $1.80, forming what analysts might describe as a triple bottom support zone. Each test has drawn buyers, but rebounds have been limited.
Market sentiment remains fragile after continued profit-taking following a rally at the start of the year. The Federal Reserve's first rate decision of this year will now be widely watched by traders.
Tomiwabold Olajide
Yuri Molchan
Gamza Khanzadaev
Godfrey Benjamin
Arman Shirinyan