Ethereum, XRP, and Other Cryptocurrencies Price Forecast for August 5
Ethereum faced an 11% decline on Monday due to the broader crypto market crash. Despite the blow to long traders, they are showing signs of a potential recovery as exchange outflows increase. This comes after Ethereum sustained over $380 million in liquidations.
On the other hand, XRP experienced a 7% drop on Monday, hovering around the $0.50 support level. Ripple’s Q2 2024 report included bullish updates, but these failed to drive gains for XRP as it succumbed to a market-wide correction, pushing it below the psychological support at $0.50. Currently, XRP remains near $0.50, down nearly 7% on Monday.
Crypto Exchange-Traded Funds (ETFs) were not immune to the bearish sentiment affecting the financial markets. Last week, they witnessed net outflows of $528 million, according to the CoinShares digital asset weekly report. This marked the end of a four-week period of net inflows for crypto ETFs.
The market’s volatility has been evident, with meme coins like Pepe (PEPE), Book of Meme (BOME), and Trump (MAGA) experiencing significant double-digit crashes. These coins are now testing crucial support levels, and technical indicators suggest the possibility of further corrections for these assets.
Bitcoin, the leading cryptocurrency, faced challenges as it slipped below the $50,000 support level early in the week. This drop coincided with a global stock market sell-off and a rally in bonds amid concerns of an impending recession. The crypto market also saw $1.06 billion in liquidations within a 24-hour period, as reported by Coinglass data.
Bitcoin’s price weakness persisted on Monday, trading 12% lower at $50,898 at the time of reporting. This decline was influenced by a slowdown in US employment, highlighted in the Nonfarm Payrolls (NFP) report for July, and escalating tensions between Israel and Iran.
Overall, the crypto market continues to navigate through turbulent waters, with various digital assets experiencing fluctuations in response to market dynamics and external factors. Investors are advised to conduct thorough research and exercise caution when making investment decisions in this volatile environment.