It is a bearish Monday for the cryptocurrency market as the major cryptocurrencies are currently in the red. Bitcoin dipped to the $92k level, while XRP briefly retested the January 2nd low following an excellent start to the year.
With XRP wiping out its recent gains, it could encounter further losses as increasing exchange reserves show that investors are reducing their exposure to the cryptocurrency.
XRP retests $1.85 as bulls suffer huge losses
The cryptocurrency market was bullish last week, but most of the gains were wiped out a few hours ago thanks to the ongoing trade tension between the United States and the European Union (EU).
XRP is down 3.7% in the last 24 hours and is now trading at $1.97 after briefly retesting the January 2nd low of $1.85 a few hours ago.
The trade war between the United States and the EU bloc began trade war emerged after President Donald Trump threatened to escalate tariffs, starting at 10% on February 1 and rising to 25% by June, on imports from eight NATO allies (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland).
Trump added that the tariff will stay in place unless Denmark agrees to sell Greenland to the United States.
European leaders criticized the move, describing the demands as blackmail and warning of a “dangerous downward spiral” in transatlantic relations.
However, Min Jung, associate researcher at Presto Research, pointed out that the cryptocurrency market is currently weak compared to other financial markets. Jung added that,
“While US-EU trade war concerns have had the largest impact on sentiment, other risk assets, including the KOSPI, are trading flat to higher. This suggests that crypto-specific weakness persists, with investors favoring other risk assets, a theme that has continued as most markets rally while crypto remains the laggard.”
XRP could reclaim $2.0 if the swing low holds
The XRP/USD 4-hour chart is bearish as XRP has lost 4% of its value in the last seven days, making it one of the worst performers in the top 10.
The momentum indicators are bearish, suggesting that sellers are currently in control of the market.
The RSI of 40 is below the neutral 50, indicating a growing selling pressure on the coin.
The MACD line also crossed into the negative zone on Thursday, adding further bearish confluence to XRP.
If the selloff continues, XRP could retest the Monday low of $1.8533 in the near term. An extended bearish performance could bring the $1.80.
However, if the market recovers, XRP could surge past the $2.06 resistance over the next few hours or days. The $2.2 resistance remains a strong one for XRP following multiple failed attempts in recent weeks.
The post XRP slips toward $1.85 as EU–US trade tensions deepen crypto market losses appeared first on Invezz
