Crypto

XRP Plunges Below Crucial Support Level, But There Is Hope: Crypto Market Review, September 15

Arman Shirinyan

Worrying market conditions put too much pressure on altcoins despite Ethereum merger success

The Ethereum merger is finally live, but the market remains anemic due to the latest CPI release which caused a stir among investors. Somehow, the majority of investors in the cryptocurrency market don’t seem to care about the fundamental update especially since volatility is still at the lower end of the range.

Altcoins reach extremely low levels

Over the past 24 hours, most assets including XRP, Cardano and Dogecoin have suffered serious blows. The main reason for this is the massive outflows from the cryptocurrency market, as investors believe that we are going to see a tightening of monetary policy and a decrease in the demand for risk.

XRP fell below the crucial support level for the second time this month, making the possibility of a price reversal questionable, especially with the current market conditions. In order to stay afloat, XRP would need to regain around 4% of its value and get back above the aforementioned support level, otherwise we will see another drop.

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Dogecoin, on the other hand, shows nothing exceptional; memecoin price is moving steadily in a local downtrend and has now hit this year’s low at around $0.06.

Unfortunately, the asset neither gained nor lost trading volume after the Ethereum Merge update, showing that the majority of market participants are not interested in high-risk assets like DOGE.

ETH goes deflationary

At only 16.5 Gwei per transaction, Ethereum will remain deflationary as the total cryptocurrency issuance is already at -200 ETH after just 30 minutes of live melting.

ETH data
Source: Ultrasound.Money

Unfortunately, deflation cannot be the only condition for growth, as EIP-1559 did not lead to the permanent buzz that some Ethereum maxis were expecting. Network usage and revenue remain two main factors that match the growing market value of ETH, which has been proven in at least two market cycles.

The small increase of 0.4% in the price of Ether in the midst of the largest update in the history of the network is another confirmation of the aforementioned thesis. Cryptocurrency will most likely see no recovery until the Federal Reserve and other financial regulators around the world control the market by constantly raising the policy rate, which affects the behavior of institutional and retail investors.

Since the ATH returned in November, Ethereum has lost over 65% of its value.

Bitcoin is anemic

With all the narrative and spotlight shifting around the Ethereum update and the cryptocurrency itself, Bitcoin has lost ground in the financial and social realms as investors are not interested in digital gold. – who does not know his best moment.

Bitcoin Chart
Source: TradingView

According to on-chain data covered by Willy Woo and discussed in the recent U.Today article, Bitcoin still has some downside room, which can be confirmed by looking at the daily chart of the top cryptocurrency. A moderate 7% correction would bring BTC back into the price range we saw in July at around $19,000.

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