XRP price fails to follow Bitcoin and Ethereum rally, now US CPI could trigger Ripple bears to make a comeback
|- Ripple price pares back the bullish move from the US session on Monday.
- XRP slides below the key support level and trades heavily to the downside.
- Expect to see US inflation being sticky as markets could be set up for another downbeat surprise.
Ripple (XRP) price action is sliding lower, already 1% in the red on Tuesday, and bulls are unable to halt the current fade from sliding below a pivotal support level. On Monday, FXStreet warned that any gains or recovery could be very short-lived as markets underwent a seismic shift with the bond market leading the way. Markets have changed their belief in just a few trading hours from rate hikes and pivotal levels to no more hikes and possibly even cuts from the Federal Reserve in the coming months as traders fret that the current crisis might be a throwback to 2008.
Ripple price could see that seismic move from Monday being undone
Ripple price is thus in a major risk aversion moment as bonds saw their yields drop sharply in moves not seen for even a decade. One would almost forget the reason that brought us here: inflation that is still very much elevated and needs the Fed to raise rates even higher to cool down the economy. And guess which number is up in a few hours – the US inflation (CPI) number. In that case, brace yourself for another volatile day.
XRP traders will be watching this number to be sure that markets will continue their path into risk-off or risk-on modes as Fed hikes will trigger recession and rate cuts will trigger a Goldilocks Scenario. Should the CPI monthly number come in at 0.5% or above, expect to see a very hawkish move in terms of rates with a bond sell-off amid cryptocurrencies being hammered to the downside. For XRP that means a slide of 5% toward the monthly S1 support at $0.3520.
XRP/USD 4H-chart
Estimates are for the core monthly CPI to be between 0.2% and 0.5%, which would see XRP pop higher and reach that monthly pivot near $0.3875. If inflation drops surprisingly toward 0.1% or turns negative, expect to see a bullish beast being unleashed. XRP would be seen jumping 10% for the day, reaching $0.41 at the monthly R1 and taking out a few vital technical moving averages in that move.
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