XRP’s price is currently experiencing a decline, paralleling the overall trend in the cryptocurrency market. This downturn comes in response to Federal Reserve Chairman Jerome Powell’s hawkish statements at the Jackson Hole conference, which has prompted investors to de-risk their portfolios.
On August 25th, the price of XRP dropped by 1.25% to $0.507, slightly underperforming the overall crypto market, which saw a 1% decrease in its capitalization during the same period. This decline coincided with the U.S. Dollar Index (DXY) reaching a two-month high, indicating that investors are increasingly seeking safe-haven assets.
Furthermore, market sentiment regarding rate guidance is currently mixed. The CME FedWatch Tool shows that expectations of a rate pause in September remain strong. However, the probability of a rate hike in November has increased from 32% to 41% over the past month.
In the days leading up to Powell’s speech, there was a noticeable decrease in XRP exposure by whales. The supply of XRP held by addresses with a balance of over 1 billion tokens experienced a decline from 41% to 39.21% within a week. Additionally, the supply held by addresses with balances ranging from 10 million to 100 million tokens dropped by 0.25% over the last four days.
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A significant event worth noting is that a large XRP investor moved 29.3 million XRP tokens, equivalent to $15.13 million, to the Bitstamp exchange. This movement is expected to increase the available supply of XRP and potentially create additional selling pressure.
From a technical perspective, the XRP/USD pair may face further losses in the upcoming days or weeks. XRP’s current consolidation trend appears to be forming a bear flag pattern. This pattern is characterized by the price moving between two rising, parallel trendlines after a significant downward move (known as a flagpole).
The bear flag typically resolves when the price breaks below its lower trendline, leading to a decline of the flagpole’s height. In this case, the bears may target a possible flash crash towards $0.40, which would represent a 20% decrease in price by September.
However, the bulls can still hold hope for XRP’s daily relative strength to become oversold, potentially resulting in a short-term recovery towards the upper trendline of the flag. If this scenario plays out, the bullish target for XRP’s price would be $0.54, which corresponds to a 6% gain by the end of August.
It’s important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve inherent risks, and readers should conduct their own research before making any decisions.
