- Ripple price slides nearly 2% lower during ASIA PAC and European trading sessions.
- XRP price, however, gets underpinned and refrains from making new lows.
- Expect to see a 13% upswing in the coming days as the Fed is set to deliver a dovish tone.
Ripple (XRP) price is set to get some backing from the Fed as this week mostly focuses on US inflation and its central bank. Expected to come on Wednesday evening is a speech where Fed Chair Jerome Powell will hike interest rates by 50bp and try to go for that Goldilocks scenario with a soft landing for the economy. To get that done, Powell will need to bring a positive story, saying that the worst is over and now gradually the Fed can begin tapering its interest rate hikes.
XRP to be salvaged by the Fed chair
Ripple price is still digesting the dip from the past weekend, where bulls received a firm rejection on Saturday against the 200-day Simple Moving Average (SMA), and XRP has been trading lower since then. The weekend included, currently XRP is trading 5% lower than where it was on Friday at the US closing bell. Thus far, the negative news is that price action is underpinned at $0.3710 and looks to be held before the US trading session.
XRP price will flirt with a break of that level, as volumes remain low while traders keep their powder dry for either Tuesday with the inflation numbers or Wednesday for the Fed. Expected is some more support from Powell for the markets as a soft landing is still possible while inflation is coming down. Translated into XRP price, that would mean a jump above the 200-day SMA toward $0.4228 with the monthly pivot and the 55-day SMA broken to the upside at $0.4143.
XRP/USD daily chart
The big risk to the downside comes with the chain of events that could completely fall the other way, with US inflation suddenly soaring again or coming out above expectations and the Fed chair being hawkish and sticking with a 75bp hike, a much more aggressive projection for next year. When that scenario unfolds, expect a massive drop in risk assets with XRP dropping toward $0.3043 and possibly even flirting with $0.2800 as the next massive sell-off unfolds. The US Dollar strength will trigger a double whammy for the bears in that case.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.