After Bitcoin’s rally lifted the crypto market in a bullish direction, the US CPI data that came out on Tuesday morning triggered strong volatility. XRP price fell from a weekly peak of $0.53 to $0.52, a 1.3% drop, while BTC price tried to stabilize above $48,000 after plunging from a two-year record of $54,400 traded in December 2021.
What’s XRP Price Future Like
The market may face more downward pressure as the week goes on. US inflation remains high and defies expectations, which is bad news for investors in risk assets like Bitcoin.
The Federal Reserve is not giving any signs of speeding up the rate cuts. According to reports, the Fed will probably postpone the first interest rate cut from March to July, influenced by Chair Jerome Powell’s tight stance after the previous FOMC meeting.
As the storm settles, XRP price shows signs of bouncing back immediately. But first, current resistance at the 50-day Exponential Moving Average (EMA) must be reclaimed to boost confidence in the uptrend.
Although neutral, the Relative Strength Index (RSI) has fallen from near overbought conditions on Monday to below 50. If the slide continues, investors may want to dampen expectations and be open to the idea of buying lower-priced XRP at the 61.8% Fibonacci level around $0.51, and at the 78.6% Fibo around $0.5.
XRP price chart | Tradingview
Opportunities to buy the dip are galore but amid this volatility, traders would be looking for a ‘confirmation of a confirmation’ to avoid bull traps. A four-hour candle close above the 50-day EMA S/R could be the first signal to be confirmed with a break above the 50% Fibonacci level at $0.5253.
Although XRP has the potential to rise to $1, it would be wise to temper expectations and consider possible pullbacks from key resistance levels like the 200-day EMA (purple line) at $0.5352 which extends to $0.54, and subsequent hurdles at $0.6, as well as $0.75.
Are Whales Selling XRP?
Several hours before the sharp drop in the price of XRP alongside other cryptocurrencies, Whale Alert reported a massive transfer of XRP to Binance.
The whale moved 200 million XRP worth around $106 million at the time from an unknown wallet, suggesting an intention to sell.
Investors transfer crypto to exchanges when they are considering selling and with XRP rising from $0.48 at the beginning of February — unlikely to have been coincidental.
For now, traders are safe watching out for a possible trend reversal with movement above the 50% Fibonacci sending a buy signal. The opposite of this could be a dive to sweep liquidity at $0.5 ahead of a larger breakout.
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