Rising Bond Yields, Inflation Fears Are Driving Investors Away from Riskier Assets

XPR must hold above $2 to avoid further losses, while a breakout could push it toward $2.80 or even $5 if market sentiment improves.

Cryptocurrency prices are sliding as investors react to the latest U.S. jobs report and pull out of riskier assets.

Rising bond yields and inflation fears are pushing them toward safer investments, leaving riskier assets like XRP struggling.

Bitcoin, the largest cryptocurrency, has dropped 20% to trade at $80,000. As 10-year U.S. Treasury yield surges to 4.3%, reaching its highest level since November 2023, it signals that big investors are pulling out of crypto. Global trade tensions are stirring up more uncertainty.

Recently, there has been a strong move in XRP, with the 1-day chart forming a head-and-shoulders pattern, often signaling a potential price drop. However, crypto analyst Ali Martinez says that if XRP avoids closing below the head-and-shoulders neckline and breaks above the right shoulder instead, it could invalidate the bearish pattern. This move might trigger a bullish breakout toward $5.

But if XRP manages to hold above the key $2 support level and moves past the right shoulder of the pattern, it could trigger a strong rally. In that case, prices could climb toward $5, but this would require solid buying pressure and positive market sentiment.

If approved, an XRP spot ETF could attract institutional investors and drive prices higher. However, the SEC’s next move will be crucial. If the agency decides to appeal Judge Torres’ ruling, it could block XRP spot ETF applications, delaying any potential market growth.

At the same time, Ripple and the SEC might be in discussions following Judge Torres’ final ruling. Ripple might try to challenge parts of the decision, which could impact the case’s outcome and influence XRP’s future.

Key Levels:

As XRP trades at a crucial level, staying above $2 is key to avoid further losses. A breakout could push it toward $2.80.

Technical Indicators:

The Relative Strength Index (RSI) stands at 42, indicating that XRP isn’t overbought or oversold yet.

What's Next:

All eyes are now on the key support levels for XRP as it faces pressure.