Published on augustus 3, 2024, 12:34 am
Image source: Fox News
```json [ "TLDR: Ripple's XRP prices dropped significantly due to Ripple vs. SEC lawsuit delays and reduced expectations of an interest rate cut. Uncertainty increased after a canceled meeting between SEC and Ripple officials. Declining odds of rate cut in September also impacted market. Ripple moved over a billion XRP from escrow, potentially affecting prices. Price action shows bearish signs on daily charts. Overall, market volatility emphasizes the need for thorough research before investing." ] ```
The Altcoin market saw XRP prices taking a hit today due to delays in the Ripple vs. SEC lawsuit and reduced expectations for an interest rate cut in September. The recent downturn wiped out all the gains XRP had accumulated over the past couple of weeks, with the 10.75% decline since August 1st, including a 6.75% drop today.
The cancellation of an important closed-door meeting between the SEC officials and Ripple on August 1st left many crypto traders speculating about potential resolutions but offered no clear explanations for the postponement, creating uncertainty within the crypto community.
Furthermore, declining odds of an interest rate cut in September contributed to today’s losses in XRP and across the broader cryptocurrency market. The decreasing probabilities of a rate cut were evident in CME data that showed a drop from 88.2% to 71.50% for a 25 bps rate reduction by September following statements made by Fed chair Jerome Powell at a press conference on July 31st.
Ripple moved over a billion XRP within 24 hours as part of a fund release from escrow, potentially impacting market supply and prices downward if demand doesn’t meet this influx. However, Ripple could re-lock a significant portion of the newly released XRP back into escrow to manage supply dynamics.
XRP’s price action has shown signs of bearish divergence on daily charts following Powell’s press conference, indicating potential corrections ahead. It is currently testing key support levels around $0.571 and eyeing a rebound towards $0.607; failure to hold support could lead to further testing of EMAs around $0.54.
Overall, these developments highlight the volatility and uncertainties present in the cryptocurrency market, emphasizing the importance for individual investors to conduct thorough research and analysis before making any investment decisions.
Original article posted by Fox News
