Ripple slips to $0.9866 – Why it’s crucial to break over $1.025?
The XRP/USD was closed at $0.95393 after placing a high of $0.97303 and a low of $0.92334. XRP/USD rose for the fifth consecutive session on Wednesday amid the positive momentum surrounding Ripple’s ecosystem.
The markets continued moving positively following the optimism that emerged after the latest lawsuit filed against the SEC in favor of Ripple Labs, which ultimately pushed XRP higher in the market.
Empower Oversight claimed that SEC was being biased towards Ripple, and this lawsuit prompted bullish bets for XRP over the prospects that it could end the year-long lawsuit between SEC and Ripple in favor of the payment company. In simple words, market participants were betting that Empower Oversight would win against the SEC, forcing the regulatory agency to find a compromise with Ripple.
The leading payment processing company, Visa, acquired Ripple partner CurrencyCloud in a massive deal worth $925 million. CurrencyCloud allows banks and fintech companies to provide foreign exchange solutions for cross-border payments. This news also added a further positive sentiment towards XRP/USD.
Meanwhile, the declining prices of the US dollar also supported the rising prices of XRP/USD. For example, the US dollar index, which measures the value of the greenback against the basket of six major currencies, fell to 96.02 level amid the prevailing risk-on market sentiment driven by the increased optimism that the Omicron variant can be less effective against the booster shots and was causing less hospitalization and severe-infections rate than the Delta variant. As a result, the US dollar and the XRP have a negative correlation that added strength to the XRP/USD in the event of a weak US dollar.
Daily Technical Levels
Support Resistance
0.92717 0.97686
0.90041 0.99979
0.87748 1.02655
Pivot Point: 0.95010
Ripple Technical Outlook – XRP Retest $1.025
The XRP/USD pair is trading at 0.9863 level, facing strong resistance at 1.0252. On the 2-hour timeframe, the SMA is likely to provide support at the 0.9271 level. A surge in demand can extend a buying trend until 1.0252 or 1.0733 resistance level.
On the other hand, a spike in selling could trigger a downtrend until the 0.9270 support, and a bearish crossover below this could lead the XRP/USD price towards levels of 0.8176 and 0.7632. So let’s keep an eye on 0.8618 for a sell trade and vice versa. Good luck!
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