Crypto prices finally found a floor, boosting coins like XRPUSD as selling pressure eased.
XRPUSD – Daily Chart
XRP is putting a second day of gains on the board after a recent price slump, and support is at the $2.00 price level.
Tech stocks and cryptocurrencies have been slumping over the past two weeks “because of the market flip-flopping on expectations for a rate cut,” CoinTelegraph said.
“As the market reverts, expect it will carry Bitcoin somewhat higher,” a report said.
“The Risk-Off Signal is dropping sharply, which tells us two things: selling pressure has eased, and the worst of the capitulation is likely behind us, for now,” another report from Swissblock added. The company said that the week ahead is critical, as bitcoin needs “to see selling pressure continue to fade”.
However, there is potential for a second selling wave, which would be a sign of a bottom if the selling is weaker than the recent lows.
“That second wave usually marks seller exhaustion and a shift in control back toward the bulls,” the analysts noted.
Bitcoin saw its most significant selling pressure since March and April over the last two weeks, dragging its price lower. The probability of a Fed rate cut in December fell to only 30% last week, but has since jumped back to 70%.
The CME Fed Watch Tool, which tracks target rate probabilities, currently has a 69.3% chance of a 0.25 basis-point cut at the central bank’s next meeting on December 10. The move from 30% occurred in one day after comments from Fed policymakers suggested a rate cut.
“I really would not be surprised to see the Fed announce something at the next meeting in the way of ‘reserves management’ … essentially, liquidity expansion,” analysts said on X.
The central bank has to inject some liquidity soon, “otherwise they go bankrupt”.
“If you are betting on a year-long bear market, you are basically betting that the USA will let itself go broke”.
The latest analysis comes after a mixed jobs report from the United States. The latest update showed the U.S. labour market unexpectedly rebounded by 119k jobs in September, but posted a total loss in August and a lower total in July. The report was delayed because of the government shutdown.
XRP could see additional value soon after the Bitwise XRP ETF officially went live on the NYSE on November 20. The news ends a year of regulatory uncertainty tied to Ripple’s long-running dispute with the U.S. SEC regulator.
Teucrium Trading CEO Sal Gilbertie recently said that Ripple is quietly laying the groundwork to build a modern competitor to JPMorgan.
