The Ripple price is under intense pressure as part of the rest of the sell-off in the crypto industry. The XRP has dropped by more than 10% in the past 24 hours, bringing the total weekly losses to almost 18%. The coin has a total market cap of more than $39 billion.
Why Ripple is falling: The XRP price is declining because of the lagging demand in the cryptocurrency industry. Indeed, most cryptocurrencies are in a deep sell-off today, with Bitcoin and Ethereum falling below $33,000 and $2,600, respectively. A closer look at these coins shows that buyers have been afraid of placing orders above $39,000 and $2,900, respectively.
The price action in Ripple provides further evidence of the close correlation that exists among cryptocurrencies. In most cases, when Bitcoin falls, other altcoins like Ether and Ripple tend to fall as well.
The XRP price is also falling as fears of high-interest rates remain. This is after data showed that the US unemployment rate fell to a pre-pandemic low of 5.8% in May. Looking ahead, investors will react to the upcoming US inflation data that will come out on Thursday this week. If the numbers show that inflation rose sharply, it will be a sign that the Fed will likely boost rates in the near term. So, what next for the XRP prices?
Ripple has also declined after the platform’s co-founder sold XRPs worth more than 400 million coins.
Turning to the four-hour chart, we see that the XRP price has been selling off in the past few sessions. The coin found no buyers above the important resistance at $1.0987. It has moved below the 25-day and 15-day exponential moving averages (EMA) and the important support at $0.8952.
There are also signs that bearish volume is rising. Therefore, this is a sign that sellers are prevailing. As such, the price will likely keep falling as bears target the next key support at $0.7900, which was the lowest level on May 29. On the flip side, a move above $1 will invalidate this prediction.
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