- Ripple price is sliding even lower than major supports.
- XRP is looking for support as the RSI is not oversold yet.
- The danger is an 18% drop in this last week of trading.
Ripple (XRP) price sees traders rebound from price action as XRP paints a blood red picture after latest US data points done with its rate hikes, and markets are poised for major restructuring and rebalancing as they ignored the Fed’s warnings. With this revaluation for 2023, there is now a risk that further declines are to be expected. Further losses of 18% are threatened in the final week of trading.
Ripple price: traders are hungover
Ripple has yet to retrieve data from last Friday, when the Fed’s favorite inflation measure, the PCE deflator, was released. The previous week, US inflation numbers had fallen, but now the PCE deflator is pointing to unchanged inflation. This means the Fed will have to make more rate hikes to rein in inflation, which in turn means markets will have to reassess as several market analysts have speculated that the Fed is close to its crucial level.
XRP thus broke below important key levels like $0.3616 and hit a new low in December last week. More downside is likely as no real support is in sight and the Relative Strength Index (RSI) is far from oversold. A dip could take place towards $0.2875, which would lead to an 18% drop and see traders abandon the psychological level of $0.3000.
XRP/USD Weekly Chart
The last week of the year has no data or Fed spokesman to make its mark on the markets. This opens an opportunity for the bulls to push the price higher. Given the low liquidity situation, the Ripple price could actually increase by 13%, with the 55-day SMA and the 200-day SMA as a double cap.