XRP has been one of the best-performing crypto assets over the last few months, thanks to Ripple’s win against the US Securities and Exchange Commission (SEC) in July. The cross-border token spiked almost hitting $1 but was rejected at $0.93 mainly due to profit-booking activities and the weak crypto market structure.
Despite the ongoing reaction to the Federal Reserve Chair’s Remarks following the decision to pause the interest rate hike for September, XRP price sits above the critical support at $0.5.
While Jerome Powell believes he has his grip on inflation, it is important “to proceed carefully in determining the extent of additional policy firming.”
Investors must prepare for at least one more rate hike before the end of the year as the Fed seeks evidence of inflation reaching “the appropriate level.” Powell in his remarks said that “we need to see more progress before we’ll be willing to reach that conclusion.”
In other words, inflation must slow down consistently to warrant a lengthy pause in the rate hikes or even in the cuts anticipated next year.
The pause on interest rate hikes is a positive sign for crypto and other asset classes considered risky, however, investors don’t sit well with the hawkish stance regarding future actions by the FOMC.
XRP Price Support On The Line
After correcting 1.2% on Thursday, XRP price is trading at $0.5057. If support at $0.5 holds without fail, bulls will have been granted another chance to fight for the next breakout. The most daunting uphill task is the confluence resistance created by the 21-week Exponential Moving Average (EMA) (red) and the 100-day EMA (blue) at $0.5239.
A natural break and hold above that price level is what bulls need to reinforce their grip and boost investor confidence. With such a move, XRP price will remove the pressure off the critical support area at $0.5.
Bulls will have to move fast before the impact of the glaring selling pressure validates a bear flag breakout. Although XRP price is impressively stable, losing support at $0.5 might exacerbate declines below the flag’s support and trigger a sell-off that could push XRP to retest $0.4 and $0.3 price levels, respectively.
Ripple’s Victory Party And The Potential Rally
The XRP community is gearing up for Ripple’s “Proper Party” on September 29 to celebrate the startup’s win against the SEC in the court battle that has continued since December 2020.
At least two major announcements are expected during this event amid speculations of an initial public offering (IPO) and a settlement with the SEC to avoid going to trial.
Whether Ripple settles with the SEC or fails to announce its IPO plans, the victory party is a high-profile event likely to catalyze bullish price action, where XRP price steadies the uptrend for gains to $0.85 and $1, respectively.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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