XRP price action set to fall 25% as crypto picture relives PR nightmare with FTX
- Ripple price action fell massively overnight in a volatile trading session during the midterm elections.
- The XRP price took another hit as the merger between FTX and Binance is in danger of being blown up.
- This creates another big blow to the image of crypto as only new investors started to forget about the LUNA meltdown.
Ripple (XRP) price action is undergoing another exodus of cash and investors from last night. Not only did the nervousness around the intermediate periods scare away investors, but the possible explosion of the FTX exchange created a resurgence of fear among traders. Binance’s sudden announcement that it would acquire FTX points for foul play has created an atomic meltdown of FTX’s related coins, such as Solana. The huge ripple effect brings back memories of the LUNA debacle earlier this year, when the stablecoin almost defaulted on its commitments to the stronger dollar.
XRP price action is poised for another visit to $0.30
The Ripple price action is undergoing yet another critical moment not only for 2022 but even in its existence. It’s not just XRP price action, but an entire cryptocurrency slaughterhouse. Investors are exiting the asset class as the Binance takeover of FTX is on the loose. The letter of intent for the takeover has no legal binding or obligation, meaning Binance could walk away from the deal at any time, leaving FTX out in the open and possibly defaulting on its obligations.
The XRP price is thus in the crosshairs, as this is yet another big PR nightmare for the already decimated asset class that was only just now starting to recover and refurbish its image after the stablecoin massacre that LUNA’s collapse triggered before the summer. Still, this exodus of investors could trigger XRP price action to break below the crucial $0.3710 barrier and continue the decline towards $0.34, which was the overnight low. If this becomes a falling knife, expect $0.30 to enter the picture and XRP to begin flirting with new lows for 2022.
XRP/USD Daily Chart
The only element that can push back against this selloff will come from other asset classes such as bonds or stocks. Certainly, stocks could rally in the US session and create a favorable tailwind that lifts cryptocurrencies a bit, regaining some lost ground during the day. $0.4228 would be a nice range towards the end of tonight’s recovery, although S1 support at $0.4085 would be more appropriate due to the big losses ahead.
