While fundamentally the price of Ripple (XRP) is expected to rise, the technical analysis is clearly pointing in the opposite direction. Crypto Market Analyst Says Ripple Chart Data Is Not Exciting.
XRP, macro catalysts at work!
On September 19, Cheds, an independent crypto market analyst, reported that he sees the price of XRP falling by the end of the year. This prediction finds its essence in the pressure of many macro catalysts. Most important is the possibility that the US Federal Reserve will raise interest rates.
Since early 2022, fear of rising rates has put downward pressure on the broader market. A Damocles sword that hangs over the majority of cryptos, including BTC and ETH.
Technically, Cheds explains that since June, the price of Ripple (XRP) has been oscillating in a range defined by a resistance of $0.38 to $0.40. As for the support, it is between 0.28 and 0.30 dollars. But on September 19, the crypto tumbled 1% to $0.35, heading towards support. This fall could continue, bringing with it the mistrust of investors who fear a disadvantageous decision by the Federal Reserve.
So the price Ripple (XRP), which is struggling to break the resistance, could return to touch this support. If this happens, the price of the crypto will validate a bearish reversal pattern called shoulder-head-shoulder (ETE). The situation could then lead to a 30% drop in the price by the end of the year, he explains.
“Applying this theory to the daily chart of XRP presents $0.242 as the downside target for the crypto. In other words, the price of XRP could lose another 30% by the end of the year, mainly due to macro catalysts”said the analyst.
The balance that tipped in favor of the Ripple (XRP) blockchain in its legal tussle with the SEC had generated significant interest among investors, spurring a 9% rise in the price on September 16. But that may soon be the end of the euphoria. The expected announcement from the US Federal Reserve on interest rates could break the bullish potential of the crypto. According to an analyst, its price could fall by 30% before the end of the year.
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