- Ripple price is opening up with a hangover as some gains are being pared back.
- XRP is supported by an important technical element.
- Expect to see price action unfazed until late this evening with the FOMC meeting.
Ripple (XRP) price gave back a bit of gain after price action popped higher on a much lower Consumer Price Index (CPI) print in the US, which even came out below the lowest estimation economists and analysts had given. That was the start of a one-direction move, with equities and cryptocurrencies higher and the US Dollar weakening. Expect a lacklustre trading session until later in the US, when Powell is set to speak.
XRP set to bounce higher if Powell delivers
Ripple price thus will be quite unphased until late in the US trading session when Powell is set to speak. Markets will be moving on the 50bp hike and the guiding opening statement that comes along with it. Once the dust has settled a bit and markets have digested the reasoning in the statement with the dot-plot projections, Powel is due to speak.
XRP looks to jump higher should Powell confirm that inflation is coming down and the Fed can start hiking with smaller increments of 50 basis points. Add to that the possibility of the Fed nearing its pivotal level and set to stop its hiking path, Wednesday’s meeting should be supportive for XRP and cryptocurrencies. Expected is a jump toward $0.412 with the monthly pivot and the 55-day Simple Moving Average (SMA) coming into play before targeting $0.4228 to the upside.
XRP/USD daily chart
For now, the 200-day SMA is underpinning the fade at hand and looks to hold. The risk is that once that breaks, XRP could slide further to the downside toward $0.3710 and completely pair back gains from the US inflation number. That would mean that should Powell deliver a hawkish speech and commit to a longer hiking path at 50 basis points, XRP will enter the region near $0.360 and $0.340 in a kneejerk reaction.