- Ripple price dropped lower on the back of super Thursday, where several central banks issued warnings.
- XRP price dropped to find support as the outlook for 2023 remains grim.
- With markets starting to adopt the idea of a recession, more downturns could be at hand in the coming weeks.
Ripple (XRP) price slipped nearly 2% on Thursday on the back of several central banks issuing warnings on their outlook for 2023. After the Federal Reserve, both the European Central Bank (ECB) and the Bank of England (BoE) came out with a similar warning that the situation for 2023 will remain dire while inflation remains sticky throughout the year. With the three major central banks across the Atlantic Ocean committing to keep hiking rates, another squeeze and downside revaluation for cryptocurrencies in 2023 is inevitable.
XRP is set to drop 20% by the start of 2023
Ripple price is under pressure again after markets are finally considering the fact that the Fed might have it right after markets ventured to doubt the US central bank and its chair on Wednesday by pricing in more cuts in 2023. Markets had to quickly erase that idea as both the ECB and the BoE delivered a similar message, pointing to an unavoidable recession. With this dismal tone, markets will be gearing up for another correction already underway in equities.
XRP is due to get that correction with a delayed effect as quite some volume has already exited cryptocurrencies. Another round of exits from cash positions would mean a breach through $0.3710. On the downside that would mean that a return toward $0.3043 is not unlikely, bearing a 20% decline.
XRP/USD daily chart
The upside is still granted once the bearish tone and outlook are priced in, as well as some more influx from investors is underway. Should the bounce off that support at $0.3710 get some follow-through, price action could swing back to $0.4228. Once bulls have pierced that level, expect to see the Relative Strength Index (RSI) getting overheated, but not before $0.48 has been touched. Still, that would be a roughly 28% rally in the books.
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
Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance.US
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14.
XRP price recovers above $0.44 as court ruling approaches, will Ripple win against the SEC?
XRP price has kept its momentum, flashing green on the one-day timeframe as the countdown to the Ripple vs SEC lawsuit continues. The remittance token is moving in tandem with our prediction last week, soaring by a significant margin to secure a place among the best-performing cryptocurrencies on a one-week timeframe.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.