The price of XRP (XRP) fell today, mirroring declines seen elsewhere in the cryptocurrency market.
On October 10, the price of XRP fell approximately 1.5% to $0.50, bringing its week-to-date returns to -4.5%. The token sell-off during the week reflected bearish sentiment across top-ranked crypto assets, with Bitcoin (BTC) and Ethereum (ETH) down 1.8% and 3.5%.
Let’s take a closer look at the catalysts that led to the price of XRP falling today.
XRP declines amid Israeli-Palestinian conflict
Cryptocurrency traders have dumped most of the leading cryptocurrencies in the face of the escalating Israeli-Palestinian conflict. XRP is no different.
For example, the total market capitalization of the cryptocurrency market has fallen by more than $32 billion since Hamas attacked Israel over the weekend. On the other hand, demand for traditional safe havens such as US Treasuries and gold jumped.
The immediate reaction of cryptocurrencies to geopolitical conflicts has been mostly negative in the past. For example, the cryptocurrency market’s valuation fell by more than 11% when the conflict between Russia and Ukraine broke out on February 24, 2022. The market pared most of these losses soon after.
Large inflows of XRP to cryptocurrency exchanges
This week’s drop in XRP also coincides with token transfers over the weekend and beginning of the week.
On October 9, an address linked to Ripple was found he moved 60 million XRP worth about $30 million to an unknown wallet, data source Whale Alert updated. Another wallet transferred over $15 million to cryptocurrency exchange Bitstamp.
– Whale Alert (@whale_alert) October 9, 2023
Technical analysis of XRP points to a 50% collapse in 2023
From a technical perspective, XRP’s recent price action has charted what appears to be a Bounce Back and Reversal (BARR) pattern.
A bar is formed when excessive speculation causes the price of an asset to rise rapidly, ultimately creating a “bull trap” situation. This pattern is confirmed after the price breaks below the major trend line, falling by its maximum high, as shown below.
Therefore, the downside target for XRP price in this scenario is a 50% decline to $0.25 over the next few months.
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Conversely, a bearish forecast may become invalid if XRP price recovers the main trend line and its 50-3D EMA (red wave) and 200-3D EMA (blue wave) as support.
This bullish case will put the XRP price with the next upside target at the 0.236 Fibonacci line near $0.69, about 40% higher than current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.