- Ripple price sees traders weary of the US Dollar strength that keeps popping up.
- XRP traders have learned the lesson in a harsh way to be careful in a stronger USD environment.
- Expect losses to remain limited as the Greenback is set to ease, seeing the end-of-the-year flow.
Ripple (XRP) price action is entering a calmer moment of the year as the Bank of Japan (BoJ) monetary policy decision event is the true and final point for this volatile 2022. Finally, some tail risks can start to ease and stay in the background as we break our heads on what to buy for Christmas and New Year at the last minute. Meanwhile, XRP price is trading on the waves of the market, with market players awaiting the year-end flow that normally should see a weaker US Dollar by the 31st of December.
XRP traders are betting on the seasonality inflows
Ripple price sees traders looking at each other to make that first move to trigger a bunch of buy-orders and run price action quite quickly upwards. Traders, however, are weary of the side effects of the US Dollar as currently, both EUR/USD and the US Dollar Index (DXY) are not going anywhere and could kick back into gear at any given moment. If there is one lesson that cryptocurrency traders have learned, then it is that they should not fight the US Dollar if it overpowers any cryptocurrency.
XRP could still be skyrocketing as a seasonal US Dollar chart shows that December is often when the Greenback is sold. This time of year would make even more sense as shorters from the beginning of the year will want to take profit and cash in, similar to hedge funds that start to pay out dividends to their investors. XRP price is thus on its way still to $0.3710 as the current faint is just a blip on the chart.
XRP/USD daily chart
Downside risk remains entangled with the tail risks on the geopolitical front. Central bankers might have closed up shop for this year, but Vladimir Putin and the situation in Ukraine, China and Taiwan are not keeping track of Christmas or New Year. Any escalation of war and nuclear threat will see US Dollar strength overpower again and quickly squash bulls with a nosedive move towards $0.3043.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.