Why is XRP price down today?

Yashu Gola12 hours agoWhy is XRP price down today?XRP price is down today, driven by delays in the Ripple vs. SEC lawsuit and diminishing expectations for a September interest rate cut.2009 Total views1 Total sharesListen to article 0:00Altcoin WatchOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onXRP (XRP) price has erased all the gains it had secured over the past two weeks. The decline is attributed to several factors, including delays in the Ripple versus SEC lawsuit and decreasing expectations for an interest rate cut in September, amongst other catalysts.XRP/USD daily price chart. Source: TradingViewSEC delays closed-door meeting

Aug. 1’s highly anticipated closed-door meeting between the United States Securities and Exchange Commission (SEC) officials attracted crypto traders’ attention, with many speculating that it would have the officials discuss a resolution with Ripple.

However, the meeting was unexpectedly canceled. Ripple and the SEC have remained tight-lipped, offering no specific explanations for the delay, leaving the crypto community in suspense.Source: SEC

XRP"s price has declined by up to 10.75% since Aug. 1, including today"s 6.75% losses.Declining odds of rate cut in September

Today"s XRP losses are part of declines in the broader crypto market, impacted by the decreasing odds of an interest rate cut in September.

As of Aug. 2, CME data showed that the target rate probabilities for a 25 basis point (bps) rate cut in September were 71.50%, down from 88.2% a week ago.Target rate probabilities for a September rate cut. Source: CME

The rate cut bets have decreased following Fed chair Jerome Powell’s press conference on July 31, wherein he said that any dovish decision would largely depend on whether or not inflation cools down.

Powell:"The question will be whether the totality of the data, the evolving outlook, and the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market. If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September."

XRP"s price has declined by up to 15.35% since Powell"s press conference, indicating that most crypto traders are securing profits amid the rate cut uncertainties.Ripple"s 1 billion XRP unlock scare

Ripple has moved over a billion XRP in the past 24 hours as part of a scheduled fund release from escrow. Whale Alert captured a series of snapshots showing these large transfers in and out of Ripple’s escrow wallet.Source: X

As of Aug. 2, 500 million XRP had moved out of the escrow account in two tranches. This ultimately increases the supply on the market. If demand doesn’t rise to match this influx, it can lead to downward pressure on prices.

However, Ripple may re-lock a significant portion of the newly released XRP, akin to its actions following the June 1 unlock. Notably, the company had re-locked 800 million XRP, albeit selling approximately 300 million XRP, valued at $182 million.XRP price technicals: bearish divergence sell-off

Today’s XRP losses are part of a broader correction that preceded a bearish divergence signal on the daily chart.

Notably, a bearish divergence is confirmed when the price forms higher highs but its momentum indicator—the relative strength index (RSI), forms lower highs. In other words, the price rise lacks enough upside momentum to continue further, which typically leads to corrections.

Related: XRP déjà vu: Is another 60,000% price surge on the horizon?

XRP has entered a similar correction cycle after topping out at a local high of around $0.658 on July 31, coinciding with the RSI"s lower high formation at 65.48. The rising daily volumes during the correction further indicate traders’ conviction in the down-move.XRP/USD daily price chart. Source: TradingView

As of Aug. 2, the XRP price was testing its 0.5 Fibonacci retracement level at around $0.571 as support, eyeing a rebound toward the next successive Fib line at around $0.607.

Conversely, a break below the $0.571 support could see a test of the 50-day (the red wave) and 200-day (the blue wave) exponential moving averages (EMAs) as support, which are treading around the same level of $0.54. This level further aligns with the 0.382 Fib line.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Cryptocurrencies# Altcoin# Federal Reserve# Dollar# Ripple# XRP# Markets# Interest Rate# Tech Analysis# Market Analysis# Altcoin WatchAdd reaction