XRP price action set to fall 25% as crypto image relives a PR nightmare with FTX
|- Ripple price action dropped massively overnight in a volatile trading session during the midterm elections.
- XRP price got another hit as the merger between FTX and Binance is at risk of being blown up.
- This again creates another huge blow to the image of crypto as only new investors were starting to forget the LUNA meltdown.
Ripple (XRP) price action is undergoing another exodus of cash and investors as of last night. Not only did the nervousness around the midterms scare investors away, but the possible blow-up of the FTX exchange created a resurgence in fear among traders. Binance’s sudden announcement that it would be acquiring FTX points to foul play and has created an atomic meltdown of FTX’s related coins, such as Solana. The enormous spillover effect brings back memories of the LUNA debacle earlier this year when the stablecoin almost defaulted because of its liabilities against the stronger dollar.
XRP price action is primed for a revisit at $0.30
Ripple price action is undergoing another critical moment, not only for 2022 but even in its existence. It is not just XRP price action but an entire cryptocurrency slaughterhouse. Investors are exiting the asset class since the Binance takeover of FTX is on loose footing. The letter of intent for the takeover does not hold any legal binding or obligation, which means that Binance can walk away from the deal at any given moment, leaving FTX out to dry and possibly defaulting on its liabilities.
XRP price is thus in the crosshairs as this is again another big PR nightmare for the already battered asset class that only just now started to recover and was polishing up 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 barrier at $0.3710 and continue its nosedive toward $0.34, which was the low overnight. If this turns into a falling knife, expect $0.30 to come into play and XRP to start flirting with new lows for 2022.
XRP/USD daily chart
The only element that could push back against this sell-off would come from other asset classes like bonds or equities. Certainly, equities could rally in the US session and create a favorable tailwind that lifts cryptocurrencies a bit, reclaiming some lost ground intraday. $0.4228 would be a nice reach by the end of this evening in the recovery, although S1 support at $0.4085 would be more suitable due to the heavy losses at hand.
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