Ripple Price Forecast: Showtime for bulls with 20% gains on the table
- Ripple price sees liquidity wearing thin and price action going nowhere ahead of Fed this Wednesday evening.
- XRP traders will want to wait until after the speech from Jerome Powell before entering the market.
- Expect to see a less hawkish Fed,, opening the door for more market optimism.
Ripple (XRP) price looks to jump higher as several signs point to more slowdowns in the US economic numbers on all fronts. For the first time in two years, the value of a house in San Francisco is worth less than last month. Overall, prices are dropping, but the job market is still near full employment. The ideal moment for the Fed to try and go for that soft landing by now putting the brakes on their rate hikes and informing the markets it is nearly done with tightening.
Ripple price will be the result of either a soft landing or a crash by the Fed
Ripple price nearly triggered a full recovery on Tuesday after profit-taking occurred on Monday against that $0.4228 pivotal level, which caused a rejection to the downside. Traders were quick to buy at the low near the monthly R1 and the 200-day Simple Moving Average as entry levels around $0.39. Expect those bulls to stay in their trade, while other traders will want to wait until the real end of the Fed policy meeting later this evening.
XRP will see two big moments where its price action will move substantially: one is around 19:00 GMT, and the next will be near the end of Powell’s speech at 20:00 GMT. Traders must be aware of the risk that the statement at 19:00 GMT can be in a completely different tone from what Powell wants to say to the markets. Be aware of whipsaw moves with stress to the downside again at $0.39, but with a final result after the closing remarks from Powell toward $0.44 as XRP will break above $0.4228 with a supportive underlying message from Jerome Powell.
XRP/USD daily chart
Risk to the downside could emerge in the scenario that the first statement at 19:00 GMT is dovish before Powell comes out hawkish in the following press conference. This may involve how noncommittal Powell is in terms of how long or how much higher the Fed wants to take rates. Markets would be left with uneasy feelings, getting no confirmation on their current assessment or pricing of the forward path. In that uncertainty, traders will flee risk assets and see XRP trade lower toward $0.37 as the 200-day SMA has been tested and broken already too much this week.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
