Filip L., a senior crypto analyst at FXStreet, recently posted a technical analysis report on Ripple (XRP), fearing the coin may suffer a significant loss while repricing for 2023. Apart from technical factors, fundamental issues like Fed’s decisions on interest rates and the FTX crash can accelerate the current bearish rally of XRP.
- According to Filip’s analysis, Ripple fell below significant turning points like $0.3616 and established a new December low last week. Since there is no genuine support in sight and the Relative Strength Index (RSI) is nowhere near oversold, further decline is inevitable.
- After the latest US data points, Ripple price sees speculators retreating from price actions as the chart presents a blood-red picture. The PCE Deflator is unchanged, the Fed is far from done raising rates, and markets are in need of a significant reorganization and rebalancing because they disregarded the Fed’s warnings. With that revaluing for 2023, there is a chance of additional decreases.
- The US inflation data decreased, while the PCE Deflator indicated that inflation was steady this week. As a result, the Fed will want to raise rates again to reduce inflation, which means markets will need to adjust their prices. Several market analysts had predicted that the Fed would be close to its crucial level.
- The price could plummet below $0.2875, representing an 18% loss, with investors giving up the psychological threshold of $0.3000.
- Fed speakers are not scheduled to address the markets in the year’s final week. Bulls now have a window of chance to raise the price action as a result. In fact, given the low liquidity levels, the 55-day and 200-day Simple Moving Averages (SMAs) could act as a double upper limit, preventing a 13% increase in the price of ripple.
See Related: Ripple Intends To Bring Ethereum Smart Contracts To Its Blockchain
