- Ripple price is sliding on ongoing recession worries for 2023.
- Technical traders pull out of XRP after failing resistance.
- At the time of writing this article, losses exceeded 2% and could reach 17%.
Ripple (XRP) price drops as traders flee to safe havens, with US bonds being the favored spot. The flight to safety was evident on Tuesday after the release of some second tier data in the form of the US Housing Index showing a significant decline in every state in the US, with San Francisco flirting with a year-long decline on the other. Further evidence of demand for US bonds was the 2-year US Treasury auction, which saw a 1.7 basis point stop-through, indicating the strongest demand since 2017.
Ripple traders become bond traders
Ripple prices again showed signs of recovery as the cryptocurrency jumped more than 5% on Monday as a Christmas rally appeared to be underway. Unfortunately, this gain has almost disappeared like snow in the sun, as traders cannot shake off recession fears for 2023. Even in the calmest week of the year, the risk of recession still hangs over the evolution of the prices, as smaller data elements suggest a recession is inevitable.
As a result, XRP sees traders retreat from risky assets like stocks and cryptocurrencies in favor of safe-haven assets like the Swiss franc and US bonds. Expect more losses to be recouped if stock prices continue to fall. The ideal candidate for the first test of support is $0.3333, and lower $0.3043 comes into play with losses during the week between Christmas and New Year that can reach -17%.
XRP/USD daily chart
Any upward movement must be firmly targeted and confirmed with a clear breakout on the chart. Of course, there is then only one level to watch: $0.3710, as this level has been a key support throughout November and is now acting as resistance. Once Ripple price reaches this level, it can rally back to $0.3850 fairly quickly, with the crossover of the 55-day SMA (simple moving average) and the 200-day SMA nearby.