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Ripple price hangs on its last straw to get that Christmas punch and hit $0.48

  • Ripple price closed back above the 200-day SMA after equities triggered a turnaround.
  • XRP traders will be on edge today as US PPI numbers will be crucial for the last three weeks of 2022.
  • Should PPI drop substantially lower than last month, expect a jump of 6% on Friday afternoon.

Ripple price will be very muted Friday morning as traders are bracing to take or leave the last chance to get this Christmas rally underway. With the US Producer Price Index (PPI) coming out Friday afternoon, global markets will look for indications that prices in the US are coming further down, opening up room for the Fed to become less aggressive. This would revalue several asset classes higher than where they are currently valued, translating to XRP price producing a 7% gain in one trading day with $0.4228 as the profit target.

XRP in make-or-break mode 

Ripple price got a surprise tailwind from US equities on Thursday, where the European session could not tie up with gains. US equities rallied firmly higher overnight following comments from Treasury Secretary Janet Yellen fired up markets after she confirmed inflation is coming down and a recession could be avoided in the US. Analyst consensus for this afternoon is a lower PPI number this afternoon, which would confirm that view from Janet Yellen and see markets front-running the inflation number .

XRP price is currently supported with the 200-day Simple Moving Average (SMA) at $0.3896 and is still holding for now. Expect not to see any big moves until this afternoon around 14:30 CET (8:30am EST), when the PPI number comes out. Depending on the decline of the PPI, expect to see a jump to the 55-day SMA at $0.42, and bulls may test that higher level from mid-November before springing toward $0.48 in the coming weeks.

 XRP/USD daily chart

 XRP/USD daily chart

Risk comes with a buy-the-rumor-sell-the-fact element as markets are already following and have been pricing in the view of analysts that see the PPI number lower. A number in line or a slightly higher number could break the sentiment and trigger a sell-off on the disappointment. The 200-day SMA would lose its support and see the price breaking down to $0.3710, possibly dipping even briefly to $0.36.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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