On Thursday, the leading cryptocurrency XRP plunged by 4%. From a high of $1.34 per day to a minimum of $1.27. It has fallen below the important $1.30 support level and is at risk of slipping even further. The altcoin’s slippery slope is making traders hesitant to take a long position. The cryptocurrency market is in a red state, so buying the token could lead to greater losses.
Please Read This: XRP Could Be In For A Major Price Dip: Here’s Why
Reasons behind the XRP Plunge
Bitcoin fell by 4%, to $72,000. Ethereum dropped by 5% and reached $1975. ETH is in a very dangerous situation at $1,900. The markets have been affected by the rising oil price, the US-Iran conflict, and the Strait of Hormuz being closed. XRP has also been caught up in this uncertain situation and is falling in line with Bitcoin.
After the Investment Bank, markets became fearful Piper Sandler wrote in a note to clients that the Strait of Hormuz could remain closed for months Oil prices may reach new heights. Oil prices could reach new highs. warning came after the US conducted “self-defense” strikes in Southern Iran Late Wednesday. XRP, and therefore the broader crypto market this week could suffer due to global developments.
On Thursday, the Asian market remained in red. Japan’s Nikkei fell 332 points, while Hong Kong’s Hang Seng plunged 330 points. The US market could be affected as well by the opening bell on Thursday. All these factors are contributing to XRP’s downward trend.
The latest data also shows that ETF flows into XRP slowed in May. Bitcoin’s price was volatile this month due to an ETF withdrawal of $700 millions. Amidst the crisis, many institutional investors are reconsidering their market investment strategies. In the event that these funds are not released, it could have a negative impact on the cryptocurrency market.
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Source: watcher.guru
