XRP price surge lures investors before another crash

Ripple (XRP) price is set to drop back to its 2022 lows as market sentiment starts to factor in more risk of a recession. The oil price has collapsed on slowing demand, and is on the brink of dropping below $100. Adding to the fear of recession, are several strikes and protests worldwide as  high inflation now really starts to bite into households' disposable income, and this is setting a grim tone for traders, and triggering a drop in investments into cryptocurrencies.

XRP set to slip 15%

Ripple price takes a step back after Tuesday’s relief rally hit a curb in the ASIA PAC session this morning. The sudden change in sentiment comes as the oil price collapses and is in danger of dropping below $100 tonight – the API oil numbers, which will throw additional light on the situation, are set to be released a day later because of the US holiday on Monday. A build-up of stockpiles could be perceived as further proof that demand is starting to drop, and mark a prelude for a feared recession already taking place over the summer, instead of 2023, as previously feared. 

XRP price has already broken below the low of Tuesday, at close to $0.3190. Meanwhile, the pivotal level of $0.3043 will work like a magnet and pull price action lower. With the dollar not rallying so forcefully, any further drops, for now, should be contained by the monthly S1 pivot support level at $0.2830, which also held on June 18.

XRP/USD daily chart

Although markets are on the back foot, the EU and ASIA PAC sessions have not shown losses above 4% or 5%, and are nothing like what was seen last week and the week before. This shows that markets are nearing the point where a recession is now already priced in. As a recession is the worst of all scenarios, any other scenario would mean potential upside and see XRP price quickly tick $0.3710 or even $0.4428, to test the 55-day Simple Moving Average and book 31% of gains in the process.