- Ripple price set to break lower and search for support at $0.36.
- XRP price will see limited downside move as a shift in sentiment will favor more upside potential.
- Expect to see a pop back towards $0.50 in the coming days with 36% gains.
Ripple (XRP) price is set to rally higher once bulls have found the support they are looking for. Currently, price action in XRP is on the back foot as global markets are on edge from a surprise double rate hike, raising the stakes for the FED and the ECB on monetary tightening and the backslash that will ensue for cryptocurrencies. Expect a dip towards $0.36 in search of support before price action gets lifted towards $0.50 in the coming weeks.
XRP set to close out the week with a turnaround
Ripple price is under pressure from bears due to the strengthening dollar, equity markets being on the back foot and a few tail risks popping up from central banking. There are several court cases involving the SEC that are weighing on the public image of cryptocurrencies, but also a lesson in economic 101 on how a central bank decision can move a whole asset class. That surprise move came in ASIA PAC trading from the Australian Central Bank (RBA) which hiked rates by 50 bps when only a 25 bp move had been foreseen, blindsiding the markets and dictating a risk-off sentiment in all corners.
XRP price sees investors hesitating as the ECB on Thursday and then the FED next week are due to speak and guide markets on their predictions for possible monetary tightening. For XRP price, fading interest could trigger a drop back towards support at $0.36. By then the Relative Strength Index (RSI) will also be in oversold territory further highlighting it as a support zone. As bears will want to book their profits, they will need to buy and attribute it to buy-side supply exploding which could lead to a quick ramp-up in price action towards $0.50.
XRP/USD weekly chart
As inflation does not look like it will be tamed anytime soon, it looks more reasonable that more rate hikes and tighter monetary policy will be needed to chain inflation, which will trigger a drop in equities and cryptocurrencies. That could mean XRP breaks below $0.36 and if more dollar strength kicks-in, expect to see another drop towards $0.30 or $0.20 depending on how big the move from the Fed and the ECB might be. Although the RSI would be massively in oversold territory by then, XRP price could still print over 40% additional losses.