- Ripple price jumped over 1% again this morning after an upbeat trading day on Tuesday.
- XRP sees bulls hammering on the monthly S1 support to break it down.
- Expect to see bulls ramping up the rally towards $0.4228 with the Powell speech as a catalyst to break above it.
Ripple (XRP) price will see traders mainly focusing on the Powell speech later today at the Brookings Institution. With many questions being raised and Fed members contradicting one another, markets will be hanging on every word coming from Powell’s mouth to get a clearer view of what the path will be going forward. Any dovish indications will fire up markets, with equities and cryptocurrencies in tandem rallying substantially higher. Fasten your seatbelts!
XRP needs to know how to trade the Powell speech
Ripple price is on the cusp of making one of its biggest moves to the upside today as traders are looking forward to hearing from Fed chair Powell as he will be one of the last speakers before the blackout period begins in the wake of the Fed FOMC meeting on December 14. The best way to trade this event is to know how or what will happen, and that approach comes by monitoring some Twitter sources via a tweet deck or having a squawk setup that will shout out the headline news for you. The speech will be released in a few minutes or even at the moment Powell is taking the stage, which will move markets before he even has said one word.
XRP thus will see inexperienced traders chasing the move, while experienced and prepared traders will be in the trade already. Expect to see the tension build up in the run-up, as bulls are already aiming for the monthly S1 support level as we speak and could hit $0.4228 near the US opening bell. The Powell speech will act as a catalyst, should some dovish undertone be retained from his speech, triggering an 8% rally toward $0.44 with the 55-day Simple Moving Average as the price cap.
XRP/USD daily chart
Risk to the downside comes with this buy-the-rumor-sell-the-fact trade setup. As several analysts will be heard on Bloomberg television and other channels, XRP will already be trading at elevated levels near the speech itself. Should the speech bear a hawkish surprise, an immediate unwinding would happen of all the long positions taken throughout the day. XRP would fall against the green supportive trend line and flirt with a break to the downside toward $0.37.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.