XRP (XRP) prices fell today, mirroring trends elsewhere in the cryptocurrency market, as investors reduced risk following Federal Reserve Chairman Jerome Powell’s hawkish statement at Jackson Hole.
BREAKING NEWS: Fed Chairman Jerome Powell says central bank ready to raise rates further if needed https://t.co/6i5vlTEPGa pic.twitter.com/20SR5aymNJ
— Bloomberg (@business) August 25, 2023
Rate hike suspense weighs on XRP price
On Aug. 25, the XRP price fell 1.25% to $0.507, slightly less than the 1% drop in market cap of the cryptocurrency market over the same period. Meanwhile, the U.S. dollar index (DXY) rose to a two-month high, suggesting investors are increasingly seeking safety.
Meanwhile, markets are currently divided on interest rate guidance. Expectations for a pause in rate hikes in September remained firm, according to the CME FedWatch tool. However, the probability of a rate hike in November has risen to 41 percent from 32 percent a month ago.
whale dumping alert
In the days leading up to Powell’s speech, whales reduced their exposure to XRP.
Addresses with a balance of more than 1 billion tokens (black) hold 39.21% of the XRP supply, down from 41% a week ago. Likewise, the supply held by the 10-100 million balance group has fallen by 0.25% over the past four days.
Notably, a wealthy XRP investor moved 29.3 million XRP worth $15.13 million to the Bitstamp exchange, which should increase available supply and potential selling pressure.
Are there more losses ahead for XRP?
From a technical standpoint, the XRP/USD pair could see more potential losses in the days and weeks ahead.
Notably, XRP’s ongoing upward consolidation trend appears to be painting a bear flag. This is a classic bearish continuation pattern that forms when prices converge within two ascending parallel trendlines following a strong downtrend (called a flagpole).
The bear flag disappears when the price breaks below the lower trendline and falls to the level of the flagpole, as shown in the chart above. Therefore, bears are looking to target a possible plunge to $0.40, or a 20% price drop by September, as the next downside target.
Related: Bitcoin Could Be Worth Below $20,000 in 2023, US Inflation Data Shows
However, bulls are pinning their hopes on XRP’s daily relative strength turning oversold, raising the odds of a short-term recovery to the trendline above the flag. In this case, the bullish target for the XRP price is $0.54, or a 6% upside at the end of August.
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
