- Ripple price enjoys a positive spillover effect from the currency war that is currently underway.
- XRP price rallies 10% and looks set to extend gains as bulls rush in to be part of the rally.
- Although it looks tempting to join the rally, regulations and economic headwinds in the US pose a risk.
Ripple (XRP) price sees bulls rushing in to be part of the rally underway on Thursday, with 10% gains already booked. These are a side effect of the currency war that escalated overnight, with the Bank of Japan intervening in the market and weakening the dollar against the yen. Forex markets are shaken by the move as it is the first time in 20 years that the BoJ has intervened. XRP price, meanwhile, is enjoying the weaker dollar which has triggered a risk rally that could still go to $0.4799 by the end of the day.
XRP price could print its best performance for 2022
Ripple price could be set to print over 20% of gains on Thursday as the rally that got sparked this morning continues. Bulls in several trading sessions across the globe are rushing in to be part of the breakout trade that first firmly rallied above $0.4228 and is set to run up to $0.4799. The move comes on the back of a shocking moment in the forex space where the dollar weakened against several currencies, alongside the Swiss franc – both risk-off currencies that were exercising a big bearish pressure on cryptocurrencies.
XRP price thus suddenly has plenty of space to move into and sees bulls using that momentum as the Relative Strength Index spikes higher. Expect a possible second push in the US trading session towards $0.4600 and, then, $0.4799. That is as far as the rally will go as at that point the 200-day Simple Moving Average will enter the scene to cap price action, combined with the Relative Strength Index breaking through the overbought barrier.
XRP/USD Daily chart
With these volatile markets, the risk could be that price action tops out in no man’s land and fades to the downside. As already seen with the forex intervention from the BoJ – whose effect is fading by the minute – the same could happen for XRP, which could see fuel for the rally run out and upside dampened. At risk will be a full paring back of the gains for today as the rally plunges back to its opening level below $0.4000.