XRP price muted as cryptocurrency markets await Fed's Powell testimony


  • Bitcoin retraces 20% since hitting the new YTD low at $17,592.
  • Ethereum price has a high-risk tolerance with an equally high reward.
  • XRP continues to see turbulence amidst the SEC dispute.

UPDATE: XRP price is still trading almost muted, staying within a very tight range in between the key $0.30 support and the now immediate $0.35 resistance. The price of Ripple has somewhat decoupled in the past few days from the price action of most cryptocurrencies, which have been on a rollercoaster. The judicial battle between Ripple Labs and the US SEC is what keeps XRP community on the sideways, as they await further developments on the availability of former SEC official William Hinman's emails and the relevancy on court of Exhibit 0 documents. In the meantime, pessimistic Bitcoin price predictions are again turning the crypto ecosystem to the downside. BTC price was unable to close above $21,000 on Tuesday and has tested the psychological $20,000 support on Wednesday ahead of a highly awaited testimony of Fed chief Jerome Powell in front of the US congress, which should present some hints of next monetary policy steps from the US central bank.

The crypto market is showing signs of a decent recovery. It may be too early to call a bottom, but multiple signals point to that possibility.

Bitcoin price on a sneaky hike

Bitcoin price is currently up 20% since the fear-invoking sell-off that brought the peer-to-peer digital currency back into the mid-17,000 zone, a level unseen since 2020. On Tuesday, Bitcoin trades at $21,000 as optimism is subtly encouraging more transactions on the Volume Profile indicator. Investors looking to partake in the discounted BTC price should consider reading last week’s outlook for an in-depth analysis and precise invalidation level.

Bitcoin price now targets a $25,700 area but is still submerged under the 200-week moving average at $22,500. Thus investors should expect turbulence amidst the optimistic recovery rally. A break and retest above $22,500 could produce enough fuel to propel the BTC price back to $25,000. 

Invalidation for the recovery rally is a breach of $17,592. If this were to occur, $16,000 would be the next target resulting in a 24% decrease from the current Bitcoin price.

tm/btc/6/21/22

BTC/USDT 1-Day Chart

Ethereum price has a higher risk tolerance

Ethereum price currently trades at $1,170 as the bulls continue gaining traction following the ground-shaking sell-off that occurred over the weekend when ETH price briefly struck $881. The Relative Strength Index shows double bottom signals on a historical indicator low, which warrants the idea that a strong counter-trend rally will occur.

Ethereum price hovers just $30 below the 200-week moving average. A breach above this resistance, followed by a retest, could be the catalyst to induce the highly anticipated recovery rally. Conventional targets lie in the $1,700 level, with FOMO targets at $2,700 for up to a 200% increase from the current price. 

Ethereum is a riskier digital asset because it has not breached the parallel channel and hovers nearly 70% above the bullish macro invalidation level at $388. If the bullish macro level were to get breached, the ETH price could fall as low as $100 for a 90% decline from the current Ethereum price.

tm/ethereum/6/21/22

ETH/USDT 4-Hour Chart

Ripple price continues to coil 

Ripple price could be setting up for the final move south as the mid-$0.30 zone is providing resistance once again. The choppy price action comes as no surprise as the XRP community continues the ongoing feud against the US Securities and Exchange Commission (SEC). 

Ripple price currently trades at $0.33 amidst the legal dispute. This week the SEC drew the first sword, filing a request to prevent Ripple from sealing essential documents pertaining to “exhibit 0”. The objection filed justifies the current market behavior as bulls are unsure how their portfolio will perform in such a volatile new correlated market. If market conditions persist, a $0.25 target still has a high probability of getting breached.

Ripple price must hurdle the $0.38 level to confidently call a local bottom. If $0.38 were to get breached, the bulls could aim for $0.64, resulting in a 100% increase from the current XRP price.   

tm/xrp/6/21/22

XRP/USDT 9-Hour Chart

 


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