bitcoinFeature
Bitcoin weakens, Ripple bank win fails to boost XRP price
The XRP price did not rise even after Ripple secured approval from a U.S. regulator to operate a national trust bank.
Observers suggest the immediate outlook for Bitcoin, which is trading at $84,459.46, and the broader crypto market appears unfavorable, as prices sit beneath crucial levels.
The largest cryptocurrency is currently trading under $80,000, falling below its 50-day average, indicating near-term weakness. Alex Kuptsikevich, chief market analyst at FxPro, noted via email, “Technical indicators suggest the downtrend is set to continue, as the market sinks further below its 50-day moving average and the resistance zones from May and September have failed to act as support.”
Secure Digital Markets reported in a daily note that the key support lies in the $80,000 area; a breach there could potentially lead to $75,000, followed by $73,000. This Ontario-based firm observed that BTC spent two weeks between $80,000 and $86,000, and its 30-day range has narrowed from 13% to 6%, suggesting a volatility squeeze that often precedes a sharp market shift.
Regarding near-term volatility, options traders on the decentralized platform Derive anticipate some movement around Wednesday’s Fed meeting, though they see no unusual activity. Derive informed CoinDesk that “An at-the-money options strategy covering Friday’s expiry costs roughly $2.4K, reflecting a move of about 3% in either direction by then. The average daily move expected around the US midterm elections is slightly lower, at approximately 2.1%.”
Meanwhile, Ripple, the fintech company utilizing XRP for cross-border transactions, received the green light from a U.S. authority to establish its own national trust bank, which could strengthen institutional custody infrastructure. Despite this, XRP has dropped 0.5% since midnight UTC.
Analysts at Marex pointed out that “The charter itself creates no requirement to buy XRP. The distinction matters with XRP funding at 0.81bp and dollar OI up 3.1%.”
The daily chart for XRP shows the digital asset hovering near $1.25, a significant support level since mid-September where buyers have defended the price multiple times. Should this level break, it would signal a lack of buyer defense, possibly ushering in a deeper decline.
Why it matters
Market sentiment is currently bearish for Bitcoin, with technical indicators suggesting a continued downtrend below key support levels. Furthermore, even positive regulatory news for Ripple failed to provide a significant boost to XRP, suggesting underlying market concerns persist.
