Why Is XRP Price Crashing Today (March 19th)

XRP price hovered at $1.45 on Thursday after crypto market correction pressures weighed on digital assets. The token fell by 1.03% over the last 24 hours as traders reacted to stricter financial conditions. A larger weakness was observed after losses in both Bitcoin and Ethereum, a sign of caution. 

Let’s uncover why the XRP price Is Falling Today.

Federal Reserve Keeps Interest Rates Unchanged 

The Federal Reserve kept interest rates unchanged at 3.5% to 3.75% on March 18. According to policymakers, rate reductions were delayed because of the continued inflationary pressures. Geopolitical instability in the Middle East was also cited by the officials.

The pause was seen by the markets as restrictive. Risk assets such as the XRP price cryptocurrencies responded to them with significant drops.

Crypto Market Corrections and Fear and Greed Index

Market sentiment has weakened alongside macro developments. The CMC Crypto Fear and Greed Index currently reads 29, signaling elevated fear. These levels are usually accompanied by defensive trading. 

Bitcoin price had tested the support of around $70,000, and Ethereum had tested around 2,150. XRP has stayed within the range following a failed breakout.

Inflation fears were also caused by rising oil prices and lowered speculative demand. The tight policy of the central bank lowered the confidence on the imminent liquidity growth.

XRP ETFs Record Zero Inflows as Institutional Interest Fades

Institutional engagement in XRP has shown signs of cooling. Information in the accumulation metrics of Binance indicates less significant large-scale acquisition. Stability in price was maintained with a reduction in the momentum of accumulation.

Wednesday recorded zero net inflows in US-listed XRP spot ETFs. The cumulative inflows are at $1.21 billion, and assets under management are almost $1.02 billion. The outflows have been 1.34 million midweek. The subdued action resembles the institutional conviction.

According to CoinGlass liquidation heatmaps, there is a high level of liquidity at the mark of $1.35. That area could attract price action if selling pressure intensifies. Liquidation groups tend to enhance speed of volatility in steep downfalls.

Any break in that direction can cause forced unwinding of leveraged positions. Macroe uncertainty keeps traders tracking support levels.

Will XRP Price Hold Above $1.40 Support Level?

As of the reporting, the XRP price traded at $1.42 after a 1.25% over the past 24-hours. The four-hour chart reflected growing bearish momentum after a rejection near the $1.54 resistance barrier.

The momentum indicators were showing weakness, with the MACD showing a bearish crossover on the four-hour timeframe.

The histogram went negative, which proves that the bullish momentum has been fading away gradually. The current support provides around $1.42, which is serving as a weak short-term support.

In case this level cannot sustain, the second point of downsides is close to the demand zone of $1.35. A more significant correction may also go up to $1.30, at which buyers had been significantly interested.

On the positive side, buyers need to recover a full $1.50 in order to rebuild confidence and counter the existing bearish action. A strong push above $1.55 would clear the runway to the psychological resistance level of $1.60.