- 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
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.