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Ripple price turns as US Dollar surprises with sudden strength

  • Ripple price slid over 3% in the European trading session after the disappointing ASIA PAC session.
  • XRP gets grilled after US Dollar strength returns, causing massive market headwinds.
  • Expect to see pressure building on $0.3710 for a possible break lower.

Ripple (XRP) price is on the back foot again after what should have been the moment every trader was waiting for this year: the Christmas rally. Instead, the rally chokes as its worst enemy is back at it – the US Dollar’s strength. Although Halloween is over, it almost feels as if the past trading days have the writing of a scary movie where the dead corpse at the end makes one last attempt to strike before finally dying. So, US Dollar strength, will you finally die?

XRP sees its nemesis lashing out

Ripple price sees bulls being outmatched by the US Dollar’s strength and its army of bears going along with it. What should have been the confirmation of the Christmas rally for this year rather looks like the Texas Chainsaw Massacre. Not only are equities selling off, but the timing as such also could not come at a worse time of the year.

XRP will probably see no Christmas rally, similar to some employees who will receive no  bonus this year, or even worse, the announcement of massive layoffs. In November, big tech confirmed thousands of jobs would evaporate, and now banks and finance are joining them with big names like Goldman Sachs, Morgan Stanley chopping into their staffing numbers. This further weighs on sentiment and will see XRP hit $0.3710 for support, possibly break that barrier, and next look at $0.3500 to do the trick.

XRP/USD daily chart

XRP/USD daily chart

Things could still be salvaged if positive elements could pop up and act as catalysts for a risk-on rally. That could come in the form of any positive comments around talks between Ukraine and Russia, Fed Chair Jerome Powell who speaks of seeing inflation abating further, and things falling in line in the next couple of months. That would trigger a pop back to $0.4228 and possibly next $0.48 to the upside for a 28% gain. 

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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