XRP Price Drops Below $0.60 Level as Market Turns Bearish, Here Are The Possible Reasons

The post XRP Price Drops Below $0.60 Level as Market Turns Bearish, Here Are The Possible Reasons appeared first on Coinpedia Fintech News

XRP, a well-known digital currency, is facing a significant decrease in its value as it falls below the important $0.60 price point. The recent troubles in the overall market have made XRP’s drop even worse, making people closely examine why its value is going down.

XRP Following Bitcoin Path

XRP’s price has been going down lately for a few reasons. One big reason is that the whole crypto market is not doing well. The value of most cryptocurrencies has dropped by 7.36% this month. Bitcoin, Ethereum, and Solana have all seen their prices go down. 

Bitcoin’s price went down by about 6.70%, Ethereum by 8%, and Solana by 10%. This overall drop in the market has affected XRP’s price too, causing it to go down by about the same amount.

PMI Data Seen Slight Drop

Meanwhile, the recent downturn in the broader cryptocurrency market has been influenced by macroeconomic shifts, particularly within the United States. 

The change in the US Manufacturing Purchasing Managers’ Index (PMI) for March, from 52.2 to 50.3, has led traders to reassess their expectations of a potential Federal Reserve rate cut in June, reducing the odds from 60% to 56.9%. 

Even though, Fed Chair Jerome Powell’s comments last week suggested that the Fed is not rushing to cut rates, which does not indicate well for crypto. 

As the recent manufacturing data suggests a potentially stronger economy, investors are moving their capital from crypto to safer assets like bonds, reflecting a trend towards risk avoidance amidst economic uncertainties.

Increasing Pressure on XRP Distribution

Another factor compounding the bearish pressure on XRP is a distribution campaign embarked on by whales and big institutions. Meanwhile, data from Santiment confirms that up to three tiers of addresses holding between 10,000 to 10,000,000 XRP tokens have continuously reduced their balances since the start of the year.

Specifically, investors holding 10,000 to 100,000 XRP collectively had a balance of 6.86 billion XRP as of Jan. 1. This figure has dropped to 6.77 billion as of now. Within the same timeframe, the balance of those with 100,000 to 1,000,000 XRP has slumped from 6.72 billion to 6.63 billion XRP.

Similarly, whale addresses holding between 1,000,000 and 10,000,000 XRP have seen their cumulative balance decline from 3.72 billion on Jan. 1 to 3.63 billion today. This sustained selloff campaign has contributed to XRP’s downward pressure, as investors pivot to other assets in fear of missing out on the bull run.

XRP Price Analysis

While XRP has held up better than the broader market amid the ongoing downturn, it still performs below par compared on a year-to-date basis. The token currently changes hands at $0.5906, having collapsed below the crucial $0.60 support level.