XRP price action in negative mood ahead of US Fed rate decision
|- Ripple price action is currently printing negative numbers for its performance this week.
- XRP price action sees its positive mood from last week dampened by many job openings in the US.
- Expect to see a more expensive dollar weighing on cryptocurrencies.
Ripple (XRP) price action is seeing a turn in sentiment after the quite positive past week, where price action briefly flirted with a pop above $0.48. The turn in sentiment came as some job numbers in the US point to a still elevated demand for workforce, thus pointing to the job market not cooling down at all. This forces the hand of the Fed to keep hiking at its current pace, and the central bank will refrain from making any projections just yet on when it will start to slow down on its quantitative tightening policy, which will trigger a stronger dollar across the board.
XRP price in repetitive loop
Ripple price action could be on an infinite loop with the same song repeating itself for 2022. Yet again, the same scenario as previous months is set to kick in with dollar strength crushing any hopes of a longer extended rally in XRP price action. The reason behind this pattern is the job market is not showing any signs of slowing down, which will see the Fed adding further rate hikes. Last week’s inflation numbers and the current number of open job offers are the cases for continuing the rate hiking cycle.
XRP price action technically had the chance to pop above $0.48 last week but failed and has been trading lower since. The false break can be seen as the perfect entry level for bears to push price action back down and for XRP price to test the 55-day Simple Moving Average (SMA) around the Fed’s statement later this evening. If the Fed continuously hikes and does not bring the message it is near its endpoint, expect a sharp nosedive move toward $0.43 with support coming in at $0.4228.
XRP/USD Daily chart
The 55-day SMA has not seen any test for support yet, and this trading day would be ideal. Expect around $0.454 to see some heavy fighting between bears and bulls as that level also falls in line with the monthly pivot. So two technical support levels that could make or break the trend and could see price action back at $0.48 quite quickly with a break above if Powell comes with a supportive message for the US economy.
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