Ripple (XRP) Rally Doused by US Interest Rate Fears... $1.37 Defense Line Emergency!

▲ XRP, cryptocurrency decline/AI generated image ©

XRP (Ripple), which had garnered significant market expectations due to its steep rally over the past month, has entered a consolidation phase, facing fears of tightening policies from the US and short-term profit-taking sales.

According to cryptocurrency market tracking site CoinMarketCap on September 5 (local time), XRP recorded a 4.11% decline over the past 24 hours, trading at $1.40, showing a larger drop than the overall market correction. During the same period, Bitcoin (BTC) fell by 2.11% and the total cryptocurrency market capitalization decreased by 1.79%, indicating a strong selling trend across risk assets. XRP, with its high beta coefficient, reacted relatively sensitively.

This decline is a result of macroeconomic shocks rather than individual negative factors. According to local media outlet The Block, US August employment figures exceeded market expectations, causing the probability of the Federal Reserve (Fed) raising interest rates in September to surge to approximately 70%. Such concerns about monetary policy tightening rapidly cooled investor sentiment across risk assets, and investors are now keenly watching the upcoming US Consumer Price Index (CPI) announcement and statements from Fed officials.

Profit-taking due to the short-term surge and technical resistance are also cited as factors that amplified the decline. Experts from local media outlet crypto.news interpreted that some investors engaged in profit-taking after XRP, which had staged a strong rally of 31.31% over the past month, reached the key resistance zone of $1.47 to $1.53. However, the daily Relative Strength Index (RSI) recorded 66.5, indicating that the upward momentum has merely subsided somewhat and is not in an oversold state. The 15.84% decrease in 24-hour trading volume suggests limited aggressive sell-off pressure.

The short-term market outlook leans towards neutral sideways movement. Currently, the range of $1.37 to $1.40 is forming a major support line. If the $1.37 line is maintained, there is a high probability of stable price consolidation between $1.37 and $1.47. Conversely, if this support line collapses, there is a risk of a decline to $1.30 or around $1.27, where the 200-day Exponential Moving Average (EMA) is located.

Experts evaluate this correction as a healthy retracement rather than a trend breakdown and predict that the cloture vote for the CLARITY Act, a US Senate bill on cryptocurrency market structure, scheduled for September 15, will be the biggest turning point for the short-term direction. Ahead of this critical event that will test the resolution of regulatory uncertainty, the defense of the support line has emerged as a key watch point.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*