HomeCrypto NewsMarketXRP Price To Move Above $0.40 As Positive CPI Numbers End Losing Streak

XRP Price To Move Above $0.40 As Positive CPI Numbers End Losing Streak


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Following the auspicious U.S. CPI report, the asset surged to a 10-day high of $0.3961 despite a deficiency of essential updates on the Ripple and SEC case.

After suffering a streak of three losses which sieved from the weekend to Monday, XRP found some new strength, staging a comeback that has taken it to higher grounds in the past two sessions. The asset reached some significant heights yesterday amid the favorable U.S. Consumer Price Index (CPI) report, touching a high of $0.3961, notwithstanding the dearth of significant updates on the lawsuit between Ripple and the U.S. SEC.

The CPI data for the year through November came in yesterday, suggesting that consumer prices rose at a pace less than what was expected by the financial authorities, with an increase of 7.1% as opposed to the expected estimate of 7.3%. This marked the fifth consecutive decline in the CPI rate since the peak of 9.1% in June.

As earlier reported, the markets rallied on the speculations that the United States central bank, the Federal Reserve, will tone down on its interest rate hikes which have so far been aggressively aimed at combating the growing inflation. The S&P 500 rose by 0.73%, with the Nasdaq Composite seeing a 1.01% increase. Pundits expect a 50-basis point hike in interest rates from the Fed today.

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XRP, in particular, saw a surge of 2.21% yesterday, closing the day at a value of $0.39535. The increase of 2.21% was preceded by a 1.44% rise on Monday, making it the second consecutive gaining session for the asset. XRP’s recent movements have been prevalent despite a lack of significant updates on the lawsuit between Ripple and the SEC.

XRP’s Price Analysis 

Meanwhile, the momentum on XRP’s rally has cooled, but the asset has still managed to hold up well above the $0.39 position despite hanging on a delicate position. The broader crypto markets remain green, seemingly unaffected by the recently-engineered Binance FUD, which is gradually fading as the exchange has proven it can handle mass withdrawals.

If XRP can hold up above $0.3902 until support arrives from promising reports, its next step would be a reclamation of the $0.40 zone, as the first crucial resistance sits at $0.4020. Following the past two gaining sessions, a third consecutive gain for today could make this a reality if the asset can eclipse the Tuesday high of $0.3961.

Upon reclaiming $0.40, if the relief rally remains sustained, XRP could test the second resistance level at $0.4087, making its way to capturing the $0.41 zone. Taking over the second resistance would more likely than not translate to a recapture of $0.41, as the third significant resistance sits at $0.4272.

Currently trading at a value of $0.3901 as of press time, XRP is on the verge of losing the $0.39 position, which would drop the asset to the first crucial support zone at $0.3835. In the event of sustained pressure from the bears, XRP could be battered to the second crucial support at $0.3717, supposing it dips below $0.3750. Its third support sits at $0.3532.

Ripple Settlement

Cardano founder Charles Hoskinson recently propagated rumors of a Ripple settlement by December 15; these rumors were summarily proven false. U.S. Congress candidate January Walker noted that a Ripple settlement would be a loss for Web3 and the world. Additionally, former Congress candidate David Gokhshtein has stated that a Ripple win is preferable to a settlement, as the latter might not provide regulatory clarity for the industry. A major significant update on the case could provide even more support for XRP’s recent rally.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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