XRP could retest $1.9 amid renewed bearish momentum; Check forecast

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) have begun the new month bearish, with over 5% losses recorded over the past few hours.

Bitcoin, Ethereum, and Ripple face renewed selling, with support levels around $80k for BTC, $2,100 for ETH, and $1.90 for XRP likely to be tested in the next few hours or days.

XRP faces selling pressure despite ETF accumulation

XRP, the native coin of the Ripple ecosystem, has lost nearly 7% of its value in the last 24 hours and currently trades at $2.05 per coin.

The bearish performance in the broader crypto market comes after the Bank of Japan (BoJ) Governor Kazuo Ueda revealed that possible interest rate hikes could be considered if the economy continues to evolve as predicted.

The interest rate hike could increase borrowing costs and negatively affect carry trades. 

Despite the bearish performance, institutional interest in the XRP exchange-traded fund (ETF) remains strong.

XRP spot ETF inflows reached $666.6 million in November, led by 21Shares’ new TOXR listing.

In addition to that, whale wallets added 150M XRP since Nov 25 despite the bearish price action.

However, ETF demand and growing whale accumulation have been unable to counter heavy derivatives unwind and large-lot selling over the past few hours.

XRP’s liquidity has thinned as the broader cryptocurrency market records losses, with further downside movement expected in the near term unless the market reverses its recent losses. 

Traders will now be looking at the ETF inflow as it would support the long-term outlook for the cryptocurrency.

Furthermore, a bullish divergence on the lower timeframe could signal a temporary pause in the selloff, allowing the bulls to push higher in the near term. 

XRP could retest $1.90 as bearish momentum returns

The cryptocurrency market had a temporary relief last week, but the bearish trend has returned.

The XRP/USD daily chart remains bullish and efficient despite XRP losing 7% of its value in the last 24 hours.

The loss extends from the 2% shed from its market value on Sunday.

XRP is now trading around the $2.0 psychological level, with further downward movement expected if the trend continues. 

Momentum indicators on the daily chart remain bearish. The RSI of 39 is below the neutral 50, suggesting selling pressure on the cryptocurrency.

The MACD is closing towards the signal line for a potential crossover, which could confirm a bearish shift in the daily timeframe. 

If the selloff continues, XRP could retest the $1.90 support level over the next few hours or days.

Losing this support level could see XRP slump towards the October 10 low of $1.7.

However, if the bulls re-establish dominance above $2.0, XRP could rebound towards the nearest resistance level at $2.20.

An extended bullish run would bring the $2.35 trendline resistance into focus.

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