Key Takeaways
FX volatility measures how much and how quickly a currency’s price moves, demonstrating the frequency and magnitude of the price changes. Large fluctuations in global currency values will directly impact the crypto market because cryptocurrencies are priced in fiat, and investors actively move between fiat currencies and cryptocurrencies. The crypto market generally reacts immediately when FX markets become unstable. The U.S. dollar and cryptocurrencies are inversely proportional; because when the USD strengthens, cryptocurrencies like Bitcoin and altcoins drop; when the USD weakens, cryptocurrencies tend to rise and breakout above major price levels.
The broader cryptocurrency market is down, and prominent cryptocurrencies like BTC, ETH, SOL, and XRP are trading below their immediate support levels. XRP, the native cryptocurrency of the XRP Ledger, and the fourth largest cryptocurrency by market capitalization, is trading at 2.04% today. According to the latest market observation, XRP’s price could plummet below $1.82 support level due to FX volatility, because it affects crypto market inflows and outflows.
The XRP spot ETFs have seen modest institutional inflows in the early weeks, collectively pulling in $666 million in net inflows within ten days. According to the experts, money is entering the newly launched XRP spot ETFs, but the amount is not enough to create a bigger impact. BlackRock, the world’s largest asset manager, has not made any official announcement regarding a possible XRP spot ETF launch. Some experts observe and analyze that BlackRock’s absence is a sign that prominent asset management firms or big institutional players are not completely positive about XRP, and they are not backing the fourth-largest crypto by market cap, enough.
According to the latest market analysis, experts warn that XRP could test the $1.82 support level if macroeconomic factors like FX volatility persist. Market observers believe that the Fed policy shifts in December will be key, as growing uncertainties of a U.S. Federal Reserve rate cut shake the currency markets. The Bank of Japan is also on the verge of its ultra-loose monetary policy to a moderate one. Their initiative to control inflation and the global economy will have a major impact on the cryptocurrency market, including XRP’s momentum. According to the expert analysis, the Bank of Japan’s (BOJ) monetary tightening could lead to a shift away from risky assets like cryptocurrencies due to the reduced market liquidity and increased risk aversion.
An analyst with the username Mr. P posted on X last week that the week ahead included major data releases and central-bank commentary that could influence liquidity and crypto flows. He stated that FX volatility, rate expectations, and dollar strength would set the tone for risk assets. He mentioned that for crypto, the following week looked more like a range-bound environment rather than a full-on dump, as long as macro didn’t throw any surprises.
Recently, XRP has been consolidating in the $2.04-$2.20 zone. If the selling rate accelerates due to the FX volatility, this level might break, and a steep price correction is just a matter of time. According to the experts, $1.82 will be pivotal for XRP because it aligns with the 50-day EMA region, and the price level acted as previous structural support. A deeper price correction towards the $1.68-$1.72 could be possible if only the USD strengthens or if ETF inflows are reduced sharply.
According to the experts, even with the FX volatility, some elements can support XRP and trigger positive momentum. Bullish factors, including enhanced institutional accumulation through ETFs, reduced exchange supply, improved market liquidity even with the Fed rate cut, and a condition where XRP remains above major moving averages, etc, are some elements that can support XRP.
Also Read: XRP and RLUSD Aim to Transform Payments Like WhatsApp Disrupted SMS
The post XRP Price Forecast: FX Volatility May Drive XRP Toward $1.82 Support appeared first on BiteMyCoin.
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