Why Did XRP Coin's Price Fall Today? Significant Developments Ahead! - COINTURK NEWS
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Why Did XRP Coin’s Price Fall Today? Significant Developments Ahead!

9:58 pm (63 days ago)
July 24, 2023

The XRP Coin price has experienced a decline due to the overall market downturn. The popular altcoin dropped below $0.7, and the decrease in risk appetite among investors who got excited after the summary judgment is affecting it. But why? It is because of the upcoming Fed meeting in two days. The Federal Reserve’s tightening decisions, which have been combating excessive sales of cryptocurrencies for over a year, continue to have an impact on the market. Powell and his team believe that further tightening is necessary.

On Wednesday evening, after a probable 25bp interest rate hike, signals will be given that one more interest rate hike will take place in a few meetings. Of course, Powell will comment by saying that we will shape our decision based on the incoming data. However, the Fed seems to have largely set the interest rate ceiling 50bp higher.

Meanwhile, institutional investors must have predicted the decline this week as they made net outflows from institutional crypto funds last week. This was the first outflow week after four weeks of inflows.

XRP Coin Price

On July 24th, XRP price dropped by 8% to $0.68, performing below the 3.5% decline in the cryptocurrency market on the same day. XRP’s price increased by 75% on July 13th but failed to surpass $1. Since then, the token’s price has dropped by 28%. In the meantime, the US Dollar Index (DXY) made a 2% leap during the same period. Meanwhile, the correlation coefficient between DXY and XRP on July 24th was -0.79, compared to +0.25 on July 13th, indicating a higher probability of XRP falling further if the dollar continues to rise in the coming months.

From a technical perspective, after the weekly Relative Strength Index (RSI) climbed to 72 last week, its highest level since April 2021, XRP entered a correction phase from overbought conditions. According to the bear scenario, the XRP price will drop to $0.59 in July or early August.

However, things could quickly turn around for XRP Coin if the dates for settlement conferences are announced soon.

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