- The upticks in the US dollar kept the XRP/USD pair under pressure.
- Ripple price prediction remains neutral in between a narrow trading range of 1.2250 – 1.1700.
- Forex trading market participants may look for sell trades below the $1.1850 level today.
The day before, XRP/USD closed at $1.18546 after placing a high of $1.32798 and a low of $1.14480. XRP/USD dropped for the second consecutive session on Monday after rising to its highest since 16th May in the previous session. Ripple price prediction remains neutral in between a narrow trading range of 1.2250 – 1.1700.
Check out our guide to trade XRP/USD with forex robots.
The SEC’s Lawsuit against Ripple Lab is Progressing – XRP/USD Under Pressure
The SEC’s lawsuit against the online payment protocol and global exchange network Ripple Lab is progressing. The US financial regulator was frequently finding itself behind the curve on technology. This has favored Ripple’s token XRP, and the price of XRP/USD is frequently surging. However, the cryptocurrency found itself under pressure after a day of touching its highest since the middle of May. The possible reason behind the declining prices of XRP/USD could be profit-taking as investors started booking profits after prices reached their 3-month highest level.
The rising price of the US dollar could also be behind the declining value of XRP/USD. The cryptocurrency faced pressure after safe-haven demand lifted the greenback amid geopolitical tensions and faded economic recovery hopes. The rising political uncertainties after the collapse of the Afghan government increased the market’s uncertainty.
On the other hand, the rising fears of fading economic recovery after a surge in coronavirus Delta variant spread across the globe added strength to the US dollar. Thus, the news pushed DXY above the 92.6 level, which eventually weighed on XRP/USD as they share a negative correlation.
The Bullish US Dollar Keeps the XRP/USD in Consolidation
On the USD front, the broad-based US dollar extended its early-day bullish bias. It remained well bid on the day as downbeat economic data from China raised doubts over the global economic recovery. This, along with political unrest in Afghanistan, weighed on investors’ sentiment and drove some haven flows towards the greenback.
In the meantime, the continuous spread of COVID-19’s Delta variant puts additional pressure on the market’s trading sentiment, which boosts the safe-haven US currency. Moving on, US Federal Reserve Chairman Jerome Powell is set to deliver a speech at a town hall for educators later in the day.
However, it is broadly anticipated that he will not discuss monetary policy at this meeting but wait until the central bank’s Jackson Hole symposium. Thus, the upticks in the US dollar kept the XRP/USD pair under pressure.
XRP/USD Price Prediction – Daily Technical Levels
Support Resistance
1.11084 1.29402
1.03623 1.40259
0.92766 1.47720
Pivot Point: 1.21941
Ripple Price Prediction – Daily Technical Analysis: Upward Trendline to Support at 1.1300
The Ripple price prediction remains neutral in between a narrow trading range of 1.2250 – 1.1700. On the 4-hour timeframe, the XRP/USD pair has violated the sideways trading range of 1.3500 – 1.2450 level, and now it’s heading lower towards the 50% Fibonacci retracement level.
On the bearish side, the immediate support stays at the 1.1800 level. However, the chances of a bearish breakout remain pretty solid. On the 4-hour chart, the XRP/USD pair’s upward trendline provides support at the 1.1800 level, and a breakout below this level could lead the pair towards the 1.1299 and 1.0770 levels.
The 50 day EMA (Exponential Moving Average-Red Line) will likely support the selling trend below the $1.2500 level. The oscillator tool Stochastic RSI is staying in the sell zone. Therefore, the chances of a selling trend remain pretty strong.
The Forex trading market participants may look to sell trades below the $1.1850 level today. The initial targets are likely to be $1.1299 and $1.0785 levels. Alternatively, the buy limit can be placed at the $ 1.0770 level (61.8% Fibonacci retracement) with a target of $ 1.1850. All the best!
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