There is a bearish cloud in the market as XRP price and other crypto asset valuations nosedived in the last 24 hours.
In about 3 hours, Bitcoin price shed $2,000, dragging altcoins along in its bearish journey. Some altcoins that registered the most dip include XRP, Binance Coin (BNB), and Cardano (ADA).
Are Macroeconomic and Market Factors Fueling Downtrend?
Notably, these three altcoins have significantly dropped, with XRP’s price declining by 5.42%. XRP, whose price reached $2.68, has since plummeted to $2.49.
The only positive highlight is that traders still support the token as trading volume rose slightly by 3.98% to $5.09 billion.
BNB’s fluctuation saw it crash from a high of $670.78 to its current price of $639.05. Meanwhile, BNB investors are shying away from the coin as trading volume has dipped by 1.07% to $1.94 billion following the significant price drop.
Cardano’s price registered a steep decline that saw it lose 7.12% of its value within a short time frame.
ADA price recorded a swap at $0.7411 in the market after climbing to $0.8192 in earlier trading. Its trading volume has also declined by 8.36% to $908.02 million.
Analysts maintain that the crypto market is witnessing a crash that has caused a mild shift in investor interest. Crypto investors are moving away from risky assets due to economic uncertainties in the broader financial market.
Financial experts attribute some of these uncertainties to concerns over the trade war under U.S. President Donald Trump.
This has triggered a significant impact on the digital asset market. On this, many has placed crypto enthusiasts on the alert as they monitor political and economic situations and their likely effect on the digital asset sector.
Another factor that might have triggered the current altcoin crash is the redistribution plans of FTX, the defunct crypto exchange.
As per schedule, FTX plans to repay some of its creditors , starting with those who held less than $50,000 or its equivalent when declaring bankruptcy.
Market watchers say this development means increased liquidity within the crypto space. This could create pressure as recipients engage in massive sales of their tokens.
Liquidation Spike Hits Altcoins
Meanwhile, the bearish sentiments sweeping the altcoin market have resulted in severe liquidations. The three altcoins in focus – XRP, BNB, and ADA have all experienced severe liquidations.
CoinGlass data shows that long-position traders suffered more liquidation in the last 24 hours. This created a liquidation imbalance between long and short-position traders in the market.
XRP’s total liquidation of $10.94 million had traders betting long on the token, wiping out $8.46 million. Short position traders lost $2.48 million.
Traders who bet long on BNB suffered relatively more losses, erasing $2.36 million from the total liquidation of $2.57 million. This left only $217,090 for traders trading short positions.
ADA followed a similar pattern, with long traders losing $3.11 million out of the total liquidation of $3.58 million. Short position traders registered $473,040 in liquidation.
While the selloff appears intimidating, these three tokens have adequately held up the forte.
Can XRP Price, BNB, and ADA Post a Recovery?
Amid these bearish developments, technical analysis shows potential support is close by for these altcoins.
Primarily, XRP price has to find support around $2.5, and if trading volume and other macroeconomic indices shift, the coin might ignite a recovery soon. BNB has local support at $640, while ADA bulls will seek to hold the $0.72 line.
Analysts anticipate a shift in the broader financial space for XRP, BNB, and ADA, as well as bullish news that could trigger a shift in market dynamics.
