Ripple (XRP) price saw a big drop of over 4% on the back of the US PPI numbers and US Dollar strength on Thursday. Ripple price shows good signs of price action being well underpinned as bulls already halted the correction even before it touched the 55-day SMA near $0.38. A few cents below, the monthly pivot was the insurance just in case the 55-day SMA could not hold. XRP price currently trades at $0.39486. The 21-day SMA has catalyzed a 3% downswing on the day. Unlike Bitcoin and Ethereum, the RSI never broke out into overbought conditions. The current downswing was catalyzed near a key resistance zone.

XRP now sees bulls coming in as the risk appetite diverges between asset classes. While European equities sell-off and US futures point to red opening numbers, cryptocurrencies are tying up with green numbers. This shows the bullish appetite in XRP that will see $0.42 being broken to the upside over the weekend.

The RSI may be suggesting that XRP's uptrend that began on January 1 at $0.30 is at risk of a liquidation. The bearish scenario creates the potential for a 22% decline from XRP's current market value.

Risk elements for today look to be small as traders will rather focus on US GDP and European inflation data. Should the new numbers next week further support the concept that inflation is sticky or even crunching higher, that would mean that markets are wrong-footed. Expect the rally to be priced out again if that is the story and see XRP dipping below $0.37 with at risk a full 7-cent drop toward $0.30.

XRP can be expected to take off from above DSMA21&55

Feb 19 2023