The crypto market is having a bearish start to the new month as Bitcoin and other major cryptocurrencies fail to rally following last week’s interest rate cut by the Federal Reserve.
Bitcoin has dropped below $108k, while Ether risks dipping to the $3,500 psychological level.
XRP, Ripple’s native coin, has reclaimed its position as the fourth-largest cryptocurrency by market cap. However, this milestone has more to do with BNB’s poor performance in recent weeks than XRP’s strength.
XRP reclaims fourth spot as BNB slips
BNB, the native coin of the Binance ecosystem, has lost its position as the fourth-largest cryptocurrency by market cap, after losing 10% of its value in the last seven days.
Since hitting an all-time high of $1,370 on October 13, BNB has lost 24% of its value and now risks dropping below the $1k psychological level.
The coin’s poor performance in recent weeks has allowed XRP to overtake it on the CoinMarketCap list. XRP is now the fourth-largest cryptocurrency, with a market cap of $144 billion, while BNB’s market cap has slipped to $142 billion.
XRP has failed to show strength in recent weeks despite Ripple’s integration into mainstream finance on the rise. Trading activity in CME’s XRP and Micro XRP futures has increased since their debut in May, with 567,000 contracts worth nearly $27 billion traded.
Furthermore, futures Open Interest (OI) reached a record of $1.4billion in September, indicating strong institutional appetite. Ripple’s technology and token are increasingly being adopted by some of the leading financial institutions in the world. h
Furthermore, Ripple’s $1 billion acquisition of GTreasury is a strong indication that the company intends to merge blockchain liquidity with corporate cash management. The acquisition also expands Ripple’s client base to more than 1,000 enterprises in 160 countries.
However, these developments haven’t boosted XRP’s price as the coin is still trading below $2.5 per coin.
XRP could retest the $2.20 swing low
The XRP/USD 4-hour chart remains bearish and inefficient as the coin has failed to rally in recent weeks. The $1.50 zone continues to act as a strong support, which could likely hold in the long term.
At press time, XRP is trading at $2.41 per coin.
The technical indicators are currently bearish, suggesting that sellers are currently in control. The MACD lines crossed over into the negative territory on Wednesday, flashing a sell signal that has lasted nearly a week.
The RSI of 45 is below the neutral 50 and could enter the oversold region if the selloff continues. If the bearish trend continues, XRP could retest the recent swing low of $2.2 in the near term.
However, if the bulls regain control of the market, XRP could rally towards the first major resistance level at $2.70. A sustained bullish run would allow the coin to hit the TLQ at $3.0.
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