The Ripple price dropped sharply on Tuesday morning, hastening the sell-off that began in early February. XRP is trading at $0.6830, its lowest since February 7th. It has dropped by more than 25% from its highest in February.
Multiple Factors for the sell-off
Various factors are behind the XRP price decline in the past few works. There are worries over the Russia-Ukraine crisis, and on Monday, Putin recognized two separatist groups in Eastern Ukraine and ordered an invasion. The UN Secretary Council bashed this action.
Primarily, such issues do not directly relate to cryptocurrencies. Therefore, the price action is majorly due to general risk-off sentiment in the market as investors divert to safe-haven assets like gold. Certainly, gold prices have hiked to the highest levels beyond six months as the fear and greed index have fallen to their lowest within a week.
Moreover, investors’ reaction to Fed’s hawkish tone has led to a drop in the Ripple price. Recent data shows the US economy has improved, with the drop in unemployment rate and rise in inflation to the highest point in 4 decades. Historically, assets like Ripple and Bitcoin are likely to be negatively impacted by a hawkish policy.
Investors are also focusing on the ongoing SEC vs Ripple case in the US. The SEC has accused Ripple and its founders of raising capital without following proper channels. Ripple has denied and hired a former senior SEC official as its lead attorney.
Although analysts believe that Ripple Price will continue to rise, the ruling is unclear. Such cases initially were completed with a fine charged to the defendants.
Ripple Price Forecast
The four-hour chart indicates the XRP price has gravely been in sell-off the past few weeks. It accelerated when it moved below the support level at $0.7530, the lower side of the descending triangle pattern.
Ripple has also moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has dropped to the oversold level. Hence it’s possible that the coin will continue dropping as bears target the next key support at $0.65