XRP’s price took a hit today, falling by 2.75% to $0.53, as concerns over an upcoming US jobs report and ongoing whale distribution weighed on the market. The cryptocurrency has been fluctuating within a tight range, with $0.56 acting as resistance and $0.53 as support, as traders anxiously await the US Labor Department’s monthly jobs survey.
Economic Concerns Impact on XRP Price
The broader cryptocurrency market has been on edge due to worries over the potential for weak jobs data, which could signal further economic slowdown in the United States. Last month’s report showed an increase in unemployment to 4.3%, which sparked volatility across risk markets, including a 30% crash in XRP’s price. If the upcoming report reveals more signs of economic weakness, it could undermine the narrative of a recovering US economy, further impacting XRP and other risk assets.
XRP/USD daily price chart. Source: TradingView
Despite the uncertainty, market sentiment suggests that traders are anticipating a rate cut from the Federal Reserve when officials meet on 18-19 September. Swap traders are pricing in a 25-basis-point cut, with a 35% chance of a 50-basis-point reduction, which could potentially boost demand for cryptocurrencies like XRP.
Whale Distribution and Bearish Sentiment
XRP’s recent price decline has been exacerbated by distribution from large holders, or “whales.” Addresses holding over 1 billion XRP tokens have reduced their holdings by 0.5% since 4 September. Meanwhile, the supply held by smaller cohorts, such as those holding between 100 million and 1 billion XRP, has seen a slight increase. This suggests that wealthier investors are taking profits and offloading some of their tokens, adding to the downward pressure on XRP’s price.
XRP ledger average daily transaction overview. Source: Messari
Weak XRPL Performance Adds to Bearish Outlook
Further contributing to XRP’s bearish outlook is underwhelming performance data from the XRP Ledger (XRPL) network. According to Messari’s second-quarter report, key on-chain metrics have declined, with new XRP addresses decreasing by 48% quarter-on-quarter, and overall active addresses dropping by 67%. This decline in activity signals waning user interest and utility, which can negatively impact market sentiment and XRP’s price.
As XRP breaks below its key support levels, the potential for further declines remains, with the next downside target potentially as low as $0.49 if bearish trends persist.
