Ripple (XRP) Drops to $0.5269 After US Jobs Report; Key Resistance at $0.5850
Ripple (XRP) experienced a 1.89% decline over the past 24 hours, falling to $0.5269 with a market cap of $29.68 billion.
The broader crypto market followed a similar downtrend, but XRP saw heavier losses after the release of the US Jobs Report on Friday.
The report showed an increase in nonfarm payrolls to 142,000 in August from 89,000 in July, while the unemployment rate dropped to 4.2%.
This data impacted investor sentiment, reducing the probability of a 50-basis point Federal Reserve rate cut in September from 40% to 30%, according to the CME FedWatch Tool.
The result was a sell-off in risk assets like XRP, which dropped to a session low of $0.5027 before recovering slightly.
As the report failed to provide clear signals on the Fed’s next move, the uncertainty surrounding rate cuts added to the downward pressure on XRP.
Key Technical Levels for Ripple (XRP)
From a technical perspective, Ripple remains under significant pressure. XRP’s current pivot point is $0.54490, a key level that will determine the next major move in its price.
To reverse its bearish trend, XRP must break above this pivot point, or it risks further declines.
- Resistance Levels: The immediate resistance for XRP stands at $0.58505, followed by a more substantial barrier at $0.61037. Breaking above these levels could signal the start of a bullish reversal. However, with the 50-day Exponential Moving Average (EMA) at $0.5519 acting as a ceiling, the path to higher prices remains challenging.
- Support Levels: On the downside, XRP’s immediate support is at $0.51447. A break below this level could push the cryptocurrency toward deeper support levels at $0.49281 and $0.47357. If XRP fails to hold above these supports, it may signal a continuation of its bearish trend.
With the Relative Strength Index (RSI) currently sitting at 38, XRP appears to be in oversold territory, indicating the possibility of a short-term bounce. However, this will only materialize if the broader market sentiment improves.
Market Sentiment: What Experts Are Saying
The release of the US Jobs Report has left analysts divided. According to Nick Timiraos, Chief Economics Correspondent at the Wall Street Journal, the report was not decisive enough to guarantee a 50-basis point cut from the Federal Reserve, but it also didn’t rule out the possibility entirely.
“The August jobs report wasn’t bad enough to seal a 50 bps rate cut as the Fed’s next move but wasn’t good enough to lead officials to rule it out on Friday,” Timiraos commented.
This ambiguity has added to the volatility in the market, as investors remain uncertain about the Fed’s upcoming actions. This uncertainty is likely to weigh heavily on XRP and other cryptocurrencies, which are particularly sensitive to macroeconomic factors.
Outlook for Ripple (XRP): Bearish but Potential for Reversal
The technical outlook for XRP remains bearish as long as the price stays below the $0.54490 pivot point. Investors should watch this level closely, as a break above it could signal a shift in sentiment and potentially ignite a bullish rally toward the $0.58505 resistance.
However, failure to breach the pivot point could lead to further declines, with the next key support level at $0.51447. A break below this would set the stage for a retest of the lower support at $0.49281, where more selling pressure could arise.
Key Insights:
- Resistance Levels: immediate resistance at $0.58505; next at $0.61037.
- Support Levels: immediate support at $0.51447; further support at $0.49281.
- Technical Indicators: 50-day EMA at $0.5519 suggests a bearish trend; RSI at 38 points to oversold conditions.
Conclusion: Will XRP Rebound or Continue Its Decline?
Ripple’s price trajectory remains highly dependent on both technical levels and broader market sentiment. If XRP can break above the $0.54490 pivot point, it may regain some bullish momentum.
However, persistent downward pressure could lead to a further decline, with support levels at $0.51447 and $0.49281 acting as safety nets.
Investors should closely monitor these levels as well as any macroeconomic developments, particularly the Federal Reserve’s upcoming rate decision, which could significantly impact XRP’s outlook.