XRP faces intense selling pressure as it inches dangerously close to the crucial $2 support level. The broader cryptocurrency market is also under pressure, driven by rising macroeconomic uncertainty and a risk-off sentiment ahead of the U.S. Federal Reserve’s policy meeting.
The Federal Open Market Committee holds its upcoming sessions on Tuesday and Wednesday, while market investors predict that interest rates will remain unchanged. Deutsche Bank analysts interviewed by CNBC believe the Fed will remain mum about its future monetary policy stance. The market gives only a 4.4% probability that the Federal Reserve will decrease interest rates.
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XRP Traders Eye $2 Support as Market Weakness Spreads
XRP has recorded losses for five days, dropping from its April 28 high of $2.36. As of press time, the token was down 3.98% in the last 24 hours, trading at $2.10. Earlier in the session, XRP touched lows of $2.08, coming close to the daily 200-day simple moving average at $2.07.
A persistent dip below the $2 level would indicate significant momentum change, leading to more intense price declines. Experts believe the $1.61 support zone will attract buying activity when price drops become more critical.
The token remains confined between the price levels of $2.60 and $2 as traders repeatedly sell at higher marks but show buying commitment at lower points. XRP prices have primarily stayed within the boundaries of its 50-day and 200-day moving averages since early February. The new price decline caused XRP to fall beneath its 50-day SMA at $2.17, displaying more bearish indicators.
A failure to sustain $2 support could potentially lead to a new lower-lower support zone examination. XRP needs to break through the $2.60 resistance level persistently before bullish momentum gains strength enough to challenge the $3 target.
The market remains cautious because investors wait for signals from the Federal Reserve about risk appetite shifts across financial markets.
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