XRP price crashed for the fourth consecutive day on Friday, reaching a low of $2.10 as the crypto market crash accelerated. It plunged to a low of $2.10 on Friday, its lowest level in over a week and 40% below the highest point this year. Let’s explore whether Ripple will bounce back.
Why XRP Price Crashed
XRP price has been in a downward trend this week. It initially peaked at $2.3344 on June 10 and then crashed for four straight days. The plunge accelerated on Friday morning after Israel attacked Iran and vowed to accelerate its attacks.
Iran vowed to retaliate, a move that may lead to a prolonged war in the Middle East. This explains why crude oil prices surged by double digits as investors anticipate more escalation and supply challenges.
Higher oil prices, coupled with Donald Trump’s tariffs, mean that inflation could continue rising in the near term. XRP and other altcoins underperform when inflation is rising, as this prompts the Federal Reserve to maintain a hawkish tone.
Fundamentally, XRP is doing well, with odds that the SEC will approve spot ETFs later this year. Such an approval will lead to more inflows from Wall Street investors and push it much higher.
The Ripple USD stablecoin is gaining market share, with its valuation surging to nearly $400 million. The RLUSD stablecoin is likely to benefit from higher interest rates.
Ripple Price Technical Analysis
The daily chart shows that the XRP price has been under intense pressure over the past few months, as it has plunged from a high of $3.40 in January to around $2 today.
Ripple has plunged below the 38.2% Fibonacci Retracement level to $2.2960. It has also moved below the 50-day moving average and is attempting to plunge below the 200-day average.
XRP price has formed a giant descending triangle pattern, a popular bearish continuation sign. Therefore, losing the 200-day moving average support will point to more downside, potentially to the lower side of the triangle at $1.9533.
Falling below that level, which coincides with the 50% Fibonacci Retracement, will confirm the bearish outlook and lead to more sell-off, potentially to the psychological point at $1.50.
The bearish XRP price outlook will be invalidated if the coin jumps above the descending trendline of the triangle pattern.
READ MORE: Crypto Market Crash: Why are Bitcoin and Altcoins Falling?
