The cryptocurrency market is still trading in the red and its effect is especially visible on Ripple’s XRP early on Thursday, which is being weighed down by its legal woes in addition to the market sentiment. At the time of writing, XRP/USD is trading at around $0.59.
With investors turning their attention towards rising hopes for the Fed to tighten its monetary policy sooner, the US dollar is enjoying the spotlight and becoming more appealing than other riskier instruments. This has driven somewhat of a sell-off in the broader crypto market, sending traders towards the safety of the greenback as an asset instead.
XRP is likely to face additional downward pressure over emerging reports about how former Ripple executive Jed McCaleb has been selling off his holdings sharply over the past several weeks. Data released by XRPScan shows that McCaleb has sold over more than 150 million XRP tokens in the past three weeks, offloading almost 10 million coins every day.
What’s even more worrying for XRP is that its volatility is on the decline, a sign that traders may be experiencing somewhat of a fatigue in trading this asset lately. With the price on the downslide, the digital asset could see volatility dipping even lower until the overall sentiment reverses and turns bullish, driving investors back into the market again.
Key Levels to Watch
On the H4 chart of XRP/USD, moving averages are exhibiting a bearish bias, although leading technical indicators Stochastics and momentum are suggesting the presence of buyers as well. However, the price is sitting well under the pivot point at $0.64.
XRP/USD
There is some hope as Ripple’s XRP has not yet fallen through the immediate support at $0.58. An increase in buying interest could take the price back up above the pivot point to test resistance at $0.69. On the other hand, if sellers remain in charge, the support level can fall away and XRP can head lower towards the next support at $0.53.