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The XRP price has retraced and lost the gains it recorded from its Sunday rally following Trump’s announcement that the crypto would be included in the crypto strategic reserve. Following this price correction, crypto analyst Trade City has key support levels that could determine XRP’s future trajectory. 

Important Support Levels For The XRP Price

In a TradingView post, Trade City highlighted $3.06717 and $1.67220 as critical support levels for the XRP price on the weekly timeframe. While analyzing the weekly chart, the analyst noted that after bouncing along the ascending trendline, XRP confirmed its breakout above $0.73056, which sparked the main bullish leg, sending the crypto up to $3.06717. 

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In line with this, Trade City remarked that $3.06717 is the all-time high (ATH) and a major supply zone. He added that the next bullish leg could begin soon enough if the XRP price can hold above this level. Meanwhile, in the event of a price correction, the analyst stated that the only key support viable in the weekly timeframe is $1.67220. 

Trade City revealed that the Relative Strength Index (RSI) oscillator has exited the overbought zone and returned to normal levels. He asserted that the bullish scenario for the XRP price becomes more likely if the RSI re-enters overbought conditions. 

Analysis Of The Daily Timeframe

Trade City went further to give an in-depth analysis of the XRP price on the daily timeframe. He stated that the first key observation on the daily timeframe for the XRP price is a strong bearish divergence on the RSI, which formed as the price moved sideways inside the range between $2.02967 and $3.30467. 

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The crypto analyst revealed that the trigger for this bearish divergence is a break below $2.02967, which has yet to happen. The analyst warned that a break below this support level could happen soon due to a drop in the trading volume. If this range breaks downward and the support level at $2.02967 is lost, Trade City stated that the XRP price could enter a deeper correction toward key Fibonacci levels such as 0.382, 0.5, and 0.618. 

The analyst noted that these three Fibonacci levels are strong support zones, which could prevent a further sell-off. Meanwhile, on the bullish side, if the XRP price breaks to the upside from its current range, the analyst assured that a new bullish leg will begin, pushing the crypto toward higher targets. The analyst’s accompanying chart showed that the XRP price could rally to as high as $4, marking a new ATH for the crypto. 

At the time of writing, the XRP price is trading at around $2.32, down over 12% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Adobe Stock, chart from Tradingview.com

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A crypto analyst believes that Bitcoin remains a very risk-on asset that is linked to the shifts in the macroeconomic landscape.

Emily Nicolle, a crypto reporter for Bloomberg, gave her take on Bitcoin as the firstborn cryptocurrency plunged 13% and entered bear territory. This might have been due to macroeconomic uncertainty and political factors.

‘Very Risk-On Asset’

Nicolle said in a Bloomberg TV interview that the current movement in Bitcoin is highly correlated with the changes in the macroeconomic landscape, adding that anything that happens on Wall Street could affect the cryptocurrency.

The crypto reporter explained that investors can never discount the impact of the macroenvironment on Bitcoin, saying, “Everything that’s happening to stocks that knocks on crypto too.”

Nicolle described Bitcoin as “very risk-on assets.” “So, when there’s turmoil happening in the S&P 500, you’re going to see that in Bitcoin as well. And so that is definitely catapulting this,” she added.

The analyst added that aside from the macroeconomic environment, the cryptocurrency sector went through a rough period. “We’ve had a 1. 5 billion hack last week. We’ve had some turmoil in terms of what’s going on in politics as well,” she continued.

Only a little over a week ago, the cryptocurrency faced a setback after a North Korean-based hacker group stole an estimated $1.5 billion worth of crypto from Bybit, which could be the largest cryptocurrency hacking in history.

“In terms of what people are expecting to see going forward, it’s still very much up in the air as to how Bitcoin could perform even in, even today,” Nicolle said in the interview.

Political Uncertainty

Nicolle also noted that political uncertainty is another factor driving Bitcoin into bearish territory. United States President Donald Trump vowed to establish clearer regulations on cryptocurrency, but these have not been met.

“Some of the things that Trump promised to do on the campaign trail have not yet come to force and those are the kind of catalysts that we’re looking to as potential upsides for Bitcoin in the weeks ahead, things like a strategic Bitcoin reserve,” she explained.

The crypto analyst pointed out that the macroenvironment is weighing very heavily on Bitcoin’s potential. “If we don’t get any movement on that, if things don’t start to look up elsewhere, Bitcoin will continue to be down,” she predicted.

Closely Watching The $70k Mark

Nicolle said that crypto traders are closely watching the $70,000 mark, which is the crucial psychological and technical support zone.

“We’re all looking at about the $70,000 mark at the minute. So, if it does continue to go down, which is kind of to be expected in the current environment, then that is the next point at which we’re going to be starting to think. That is where a lot of the risk is happening,” she explained.

The analyst described Bitcoin as the “tide that lifts all boats” so when it goes up, other cryptocurrencies also go up too. “But those smaller cryptocurrencies are hit harder when there’s tumult in markets. They are just much more volatile by comparison,” she added.

Featured image from FairPlanet, chart from TradingView

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