- Ripple price returns after a failed test of $0.3710 triggered a bull trap.
- XRP price set to make a swing trade and hit $0.3043.
- Depending on the Russian answer to the build-up of NATO troops, together with dollar strength, XRP price could drop 48%.
Ripple (XRP) price is returning with a hangover after a very short-lived party in which it rallied from $0.3043 to $0.3710, and booked 21% gains. Although bulls temporarily pushed the price above $0.3710, it turned out to be a false breakout, and eventually closed the day below, catching a lot of bulls in a bull trap in the process. Those long positions are now being dragged to the downside in a squeeze exacerbated by an overnight flare-up of geopolitical and macroeconomic tail risks.
XRP price at risk of tripping towards $0.1737
Ripple traders did not sleep well when headlines hit social media that Sweden and Finland would be allowed to join NATO after Turkey withdrew its veto. On the back of those comments, a commitment was made to double the number of military forces on the eastern borders with Russia. Markets were immediately rattled, with equity indices shedding their profit, tanking near the closing bell, and dollar strength kicking in, making it a double headwind for Ripple price to face this morning.
XRP price has already declined from $0.3710 and lost roughly 10%, as a further continuation is inevitable with the dollar strength heading into a second trading day. More dollar strength will again squeeze any cash out of cryptocurrencies and see more flight to safe havens and cash, drying up the funding for XRP. Expect to see some nervousness around $0.3043 as a break below would open up room for a decline further towards $0.1737.
XRP/USD daily chart
It is hard to look for a fundamental reason or element that would support cryptocurrencies. With these tail risks persisting, however, another soft patch like markets had last week or dislocation could provide some support. XRP price would then get some room to rally back to $0.3710 and possibly hit $0.4000 around the 55-day Simple Moving Average (SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.