Echoing the undercurrents of other top crypto assets, XRP prices are seen dipping in the marketplace today, with traders wool-gathering about a prospective Federal Reserve rate hike later this week. As per the aftermath of July 24, the XRP price showed an 8% drop to $0.68, contrasting the standard 3.5% crypto marketplace slump.
The tag teaming of XRP’s surging value against the rising strength of the dollar has been labyrinthine. A higher rate environment often kicks cryptocurrencies like XRP off the pedestal, urging traders to stray away from high-cap cryptos and choose to ensconce in the U.S. dollar. The crystal-clear example of this swing was the mass retreat from XRP during Ripple-led market rally apex on July 13.
Nevertheless, the rise and fall associated with XRP shows a certain relationship with the U.S. dollar index. Speaking numbers, from a whopping 75% gain on July 13, XRP’s price nosedived by 28% since then. During the same period, the U.S. dollar index took a joyride up nearly 2%.
Forecasting the XRP price from a technical standpoint, the token has ventured into an overbought correction stage, stirring the pot further after its weekly relative strength index (RSI) spiked to 72, the highest so far since April 2021. This rigmarole has forced a shrug-out scenario – the XRP price is expected to trot towards $0.59 in the upcoming month or by early August. However, triumph over the 0.382 Fib line near $0.77 may bolster XRP to challenge the $1 resistance anew.
The journey of high-performance assets like XRP is often a rollercoaster ride characterized by peaks and valleys influenced by numerous factors. Decisive choices rest on an array of variables, with possible outcomes running on either side of the spectrum. This investment pathway is a mystery, unresolved, held hostage to future developments, and subject to the volatile nature of the crypto world. The only certainty in these uncertain times is that everyone has a unique role to play, and individual decisions define the ride in the ever-evolving digital asset marketplace. Buyers beware, the road to profitability is paved with risk.
Source: Cointelegraph
