XRP dropped almost 9% within a 24-hour period, primarily due to institutional sales, which caused trade volumes to more than double their daily average.
The cryptocurrency found temporary support at $2.75, but recovery attempts faced hurdles below the crucial resistance level of $2.84.
Several factors, including global trade tensions and macroeconomic shifts, played a role in the broader market sell-off affecting risk assets.
Details:
- XRP peaked at $3.02 before plummeting to $2.75 on August 3 at 04:00 (UTC+7) before recovering slightly to $2.82.
- Institutional selling pressure was significantly high, with the highest trade volumes reaching 222.24 million between 14:00 and 18:00 on August 2.
- The asset’s value remained within a $0.27 range, marking an 8.91% decline.
Market Background: This drawdown in XRP’s value comes amid escalating global trade tensions and renewed concerns over tariffs, which have unsettled risk markets universally. Meanwhile, institutional investment strategies seem to be reallocating resources from altcoins to more liquid assets amidst changing macroeconomic conditions. Analysts suggest ongoing adjustments by central banks and increasing geopolitical risks as potential reasons for the recent sell-off.
Insights:
- XRP’s ability to remain above the $2.75-$2.76 range may be crucial for any recovery, while failure to reclaim $2.85 could signal further declines.
- Observations of institutional transactions and market volatility, especially concerning U.S.-China trade developments, will be significant for short-term indicators.
