- Ripple price sees bulls using the previous month’s S2 as support to spark a turnaround.
- XRP price undergoes squeeze with higher lows, pushing bears against $0.6264 cap.
- Expect a violent and quick rally towards $0.7305, booking 18% gains in total.
Ripple (XRP) price is on the cusp of breaking higher as markets are looking for a somewhat supportive dovish FED that will be able to push through some rate increases but without triggering a massive sell-off in risk assets. With that scenario forecasted, investors are frontrunning the game plan and prepositioning for stocks and cryptocurrencies to rally higher after Wednesday’s Fed meeting. Expect to see XRP price run away higher, adding $0.11 to its value.
XRP price to revisit $0.73 as it undoes the downtrend linked to dollar strength
Ripple price sees bulls returning to the scene as the Relative Strength Index swings back to the upside after trading in the oversold area. Bulls are grabbing bears by the throat as bears are squashed by a squeeze against $0.6264, while higher lows are mounting bullish pressure to the upside. Expect to see a pop higher that could efficiently run towards the new monthly pivot at $0.67 and use that level for the next leg higher.
XRP price will see bulls refraining from taking any profit around that new monthly pivot as the RSI will only be trading near the mid-50-level. That means still more upside room to come, which will trigger a second leg higher in the rally towards $0.7304. That level is vital as when it was previously breached, XRP price tanked over 20%, so a complete paring back this time would make sense.
XRP/USD daily chart
With the FED rate decision tomorrow evening, considerable event risk is nearby. Should Powell come out very hawkish and the FED hikes, expect slaughter in risk assets with equities and cryptocurrencies upfront. XRP will not be any different and will see bulls fleeing the scene, with XRP price slicing through $0.5852 like a hot knife through butter and opening up even more room to the downside, with either $0.5231 or $0.4799 trying to catch the falling knife.