- Ripple price set to print a new low as markets preposition for more risk-off.
- XRP price is set to be one of the victims for another batch of dollar strength that is about to kick in.
- New lows are also possible if bulls take a step back, with XRP price set to print $0.30.
Ripple (XRP) price is set to possibly print a new low by or over the weekend as another batch of dollar strength roils markets and makes every risk asset slip to the downside. With cryptocurrencies in the forefront of these headwinds, interest and buying power could wind down, opening room for bears to go in for the kill and possibly trigger new lows for 2022, erasing the small incurred gains from May and June in the process. Expect to see bulls squashed like flies against the wall and finally squeezed out of their positions around $0.37 before price drops like a stone some 18% towards $0.30.
XRP price set to drop like a stone
Ripple price is set to tank on the back of a chain of events sparked by the lacklustre ECB meeting where Lagarde missed the mark and disappointed the markets by committing to the smallest number of rate hikes possible, while globally, other central banks are massively ramping up their rates to cool inflation. The considerable systemic risk caused has sparked a massive flood of dollar strength that has rolled through markets and led investors to flee cryptocurrencies. That said, the dollar’s strength has not fully filtered through yet into all cryptocurrencies, with XRP price still set for a delayed correction.
XRP price is set to drop towards $0.37 first, which was the baseline low for most of May and June. Expect that level to hold some support but break nonetheless. A penetration below would open up quite a chunky area to the downside, with only $0.30 as the nearest support level. Translated into percentages, that would mean a 17% loss from $0.37 to $0.30 or 25% from where XRP price is currently trading.
XRP/USD daily chart
Alternatively, as XPR price is still currently trading between $0.37 and $0.42, a break to the upside is still possible this week, and a few cryptocurrencies have shown a dislocation from the current dollar value. This could be quite positive for cryptocurrencies such as Ripple price and result in a rally as one possible scenario even while equities are tanking. The target to the upside is set to $0.48, just above the monthly pivot.