Are whales buying as $1.5 billion in trade volume enters for XRP price?
As market uncertainties, particularly those originating from the United States, increase, XRP is perched on the precipice of a cliff. The XRP price is essentially constant and is currently trading at $0.3691, despite the market cap falling below the $1 trillion threshold to stand at $963 billion.
The crypto market has had another challenging week due to the deteriorating economic situation and regulatory pressure from US agencies. This week’s Silvergate Bank failure led to speculation that the industry will soon be haunted by the ill-fated fall of the FTX exchange.
In response to the panic caused by the failure of another banking organization, SVB Financial Group, Circle’s USDC stablecoin is nosediving and straying from its dollar peg. Silicon Valley Bank in California has a subsidiary called SVB.
According to reports, USDC is experiencing a contagion after the second US bank failed in March 2023. USDC is currently trading at $0.9052, much less than its predicted value of $1.
Investors are concerned about Circle’s capacity to correctly back the $37 billion stablecoin because around $3.3 billion in UDCD’s cash reserves may be in SVB’s custody. Stablecoins are now an essential component of the cryptocurrency market and are progressively entering the conventional banking industry.
Remember the financial catastrophe that followed TerraUSD’s collapse in May 2022? Several companies have filed for bankruptcy due to the failure of crypto juggernauts like Voyager Digital, Three Arrows Capital, and Celsius to survive the meltdown.
Ranking of funds involving SVB. Gross asset value may refer to the total size of the entrusted funds, and the actual risk exposure may only be a small amount of funds. According to @FinanceYF5 https://t.co/FRO4la2UuA pic.twitter.com/aYnM7cpKyf
— Wu Blockchain (@WuBlockchain) March 11, 2023
The possibility of a weekend sell-off cannot be taken off the table, with investors likely to panic due to the contagion of another stablecoin crash. However, data shared by Wu Blockchain on Twitter suggests “the actual risk exposure may only be a small number of funds.” That said, investors should closely follow the events around USDC and SVB in the next few days, as they will likely help determine where the crypto market is headed.
The price of XRP is currently $0.3691 during the European session, which seems to be largely constant. The cross-border token briefly rose beyond $0.40 thanks to the bulls’ vigorous January push before the bears regained control.
Looking back, $0.50 was the XRP price’s upper limit in September last year. At $0.30, there is a point of control for the downside. Moreover, XRP lost momentum during the January upswing after crossing the multi-month trend line, which was drawn from the high of September of $0.56.
XRP/USD daily chart
With the numerous negative circumstances in the cryptocurrency market, a fast recovery in the price of XRP would be a pipe dream. Yet, much attention could be focused on the bulls’ ability to find support and hold there, at least for this weekend.
However, the pressure building on top of the $18.5 billion cryptocurrency cannot be underestimated, especially in light of the disappearance of essential leverages that temporarily entered the picture in January.
The buyer congestion at $0.35 would offer the next flimsy support. The immediate continuation of the rally depends on maintaining this support. Alternatively, the price of XRP might plummet and test $0.30.
XRP/USD four-hour bearish setup
At $0.30, one of two outcomes would be anticipated, with the first allowing the price of XRP to profit from the additional liquidity and vigorously pursue a trend reversal. Trading below the same level of control, on the other hand, might start another sell-off if chaos breaks out in front of the bulls. Until XRP reaches $0.25, declines below $0.30 might not be able to be stopped.
- During USDC Depeg, Texas-Based Blockchain Financial Service Used XRP As A Solution To Convert Funds
- Crypto Market Experienced A Tumultuous Period Recently As XRP Failed To Break Through The Local Price Channel