XRP Holds $1.30 Resistance as Bitcoin Falls Below $80K

BitcoinBTC-1.34% Slips Below $80,000 Ahead of Key Central Bank Decision

Bitcoin has experienced notable selling pressure over the past day, slipping below the key $80,000 mark right before the Federal Reserve's Federal Open Market Committee (FOMC) meeting.

The total cryptocurrency market capitalization decreased by 0.4% in the last 24 hours. This slight drop brought the overall value of all digital assets down to $2.670 trillion on CoinMarketCap.

Past performance of digital assets is not a guarantee of future performance.

Inside Bitcoin's Pullback: From $85,000 to a Five-Week Low

Less than a week ago, Bitcoin made a push higher but faced immediate resistance at $85,000. That rejection sparked a sharp price pullback, dropping the coin down to $83,000 almost right away.

Sellers maintained control over the following days, driving the price below $81,000. Over the weekend, another major move downward pushed Bitcoin to a five-week low of $79,100.

Attempts to recover toward $81,000 were cut short. By Sunday, Bitcoin dipped below $80,000 multiple times, and it was unable to reclaim that level on Monday.

Bitcoin is currently trading around $79,500, with short-lived price swings occurring throughout the day. This prolonged slide has reduced Bitcoin's market capitalization down to $1.6 trillion on CoinMarketCap.

At the same time, Bitcoin's market dominance—which measures its market cap share relative to all other cryptocurrencies—has dropped under 60%.

Why the Upcoming FOMC Decision Is Keeping Traders on Edge

Crypto market participants are closely monitoring macroeconomic signals as the Federal Reserve gets ready to finish its second-to-last FOMC meeting of the year tomorrow.

Interest rate choices and economic statements from central banks often trigger significant swings in global financial markets, including digital assets.

If central bank signals suggest lower interest rates, liquidity can flow back into risk assets. Conversely, if high interest rates persist or inflation concerns grow, crypto prices could face additional downward pressure.

XRP Defies Broad Weakness Following Major Bank News

Even as major assets faced price declines, XRP managed to gain nearly 2% in daily trading, positioning itself right at the key $1.30 resistance level.

The key driver behind XRP's steady momentum is news from RippleXRP+0.05%. The company announced that it has received final green-light approval for its national bank trust, boosting trader confidence.

While this news provides positive fundamental backing, XRP's ability to cross and sustain its price above $1.30 depends on multiple potential market paths:

• Bullish Scenario: If positive sentiment follows the FOMC announcement and buying volume holds, XRP could break above $1.30 toward higher target levels.
• Bearish Scenario: If Bitcoin experiences further sharp sell-offs, XRP could fail to cross $1.30 resistance and pull back to lower support zones.
• Sideways Scenario: Price movement could remain bound within a tight range near $1.20 to $1.30 while the wider market awaits macro clarity.

It is important to remember that news events do not guarantee upward price momentum, and short-term volatility remains high across all digital assets.

Altcoin Overview: Surging Performers and Hard Losses

The rest of the altcoin market showed mixed results over the last 24 hours, with a few notable gainers defying the broader market dip while others logged steep losses.

Altcoins Moving Higher

Several tokens posted daily price gains despite Bitcoin's pullbacks:

• Quant (QNT): Continued its strong performance that started Monday, gaining over 7% to reclaim the $200 level.
• Zcash (ZEC): Rose by over 3%, moving closer to the $1,250 mark.
• Monero (XMR): Gained 2%, approaching $600.
• HyperliquidHYPE+0.38%: Increased by 2%, bringing its trading price to $78.

Major Caps and High-Percentage Losers

On the other end of the spectrum, major smart contract platforms lost ground alongside heavy losses in specific tokens:

• EthereumETH-1.37%: Slipped lower, moving closer to the $2,300 support zone.
• SolanaSOL-2.21%: Dropped below the key $100 price level.
• TRON (TRX): Dipped under $0.33.
• Bitwa (BTW): Plummeted by over 12%, struggling around $1.40.
• Rain (RAIN): Dropped by over 12%, taking its price down to $0.072.

Navigating High Volatility Periods

Periods surrounding major macroeconomic events like the FOMC meeting are historically accompanied by high market fluctuations and rapid shifts in investor sentiment.

Traders and market participants should evaluate risk factors carefully, keep an eye on official announcements, and avoid acting purely on short-term market noise.

Past performance of digital assets or market operators does not guarantee future results.