Ripple Labs’ native token, XRP, is currently experiencing a significant downturn as it approaches the end of the month. Analysts are warning that the fourth-largest cryptocurrency by market capitalization might drop below $2, sparking increased volatility for its holders. As of September 23, XRP is valued at $2.87, with a market cap of approximately $170 billion and a trading volume exceeding $7.1 billion. Although it has seen a slight increase of 2.2% in the last 24 hours, the overarching trend indicates potential declines for the asset.
After reaching a high of $3.14 in July, the token has been forming lower highs and lower lows, leading some traders to express caution about its future performance. A recent analysis highlighted the weakness in the current trend, suggesting there is no evidence of a bullish reversal. The crucial support level around $2.70 is reportedly under threat, and if it fails, the price could plummet to around $2.40. Analysts stress that XRP must close above $3 to avoid further downward pressure as September concludes.
Examining the 4-hour chart, XRP shows a rounded top pattern, which has raised concerns in the trading community. Despite a minor recovery marked by bullish candles, the low trading volume raises doubts about the sustainability of this uptick. Persistent bearish candles indicate that traders should remain cautious. The overall cryptocurrency market’s instability has further complicated considerations for intraday trading.
On a broader scale, the daily chart reveals that XRP had a noteworthy uptrend which peaked at $3.183 before undergoing a dramatic reversal triggered by a bearish engulfing candle. The recent downturn, characterized by high-volume sell-offs, has amplified worries among long-term investors, particularly as significant selling seems linked to institutional or panic-driven activities.
In terms of moving averages, both the short and medium-term indicators suggest a bearish trend. The exponential moving averages (EMAs) for the 10, 20, and 30 periods stand at $2.977, $2.977, and $2.974, respectively, all signaling a potential sell-off. The simple moving averages (SMAs) present similar bearish indications, while long-term EMAs and SMAs signal a broader uptrend.
Amid this turbulent scenario, traders are directed toward alternative crypto investments. Projects like Pepenode (PEPENODE) have emerged as attractive contenders. Pepenode, which combines elements of meme coins with utility, has gained traction with innovative presale mechanics that enable investors to earn rewards from day one through virtual mining and staking options. The ongoing excitement surrounding Pepenode has already drawn in over $1.4 million in funding, with projections for further growth as the presale progresses.
As the crypto market continues to evolve, XRP faces existential challenges, and traders are increasingly searching for more stable or promising investments than traditional assets like XRP, urging caution as volatility looms ahead. The next few days will be crucial for XRP as it navigates potential lower support levels and the implications of ongoing trends in the cryptocurrency market.
