The XRP/USD pair has been correcting downwards for about four weeks in a row. On Monday, the price reached two-month lows around 0.3580, after which it regained a small part of the lost positions.
The XRP token, like most of the cryptocurrency market, continues to be under pressure from monetary factors. The January US inflation data turned out to be worse than forecasts: the consumer price index was 6.4% instead of the expected 6.2%, and the base index was at 5.6% instead of 5.5%. The decline in inflationary pressure in the US economy is happening too slowly to give grounds for the US Fed to suspend the current cycle of tightening monetary policy, so the interest rate increase will continue in the coming months, which will negatively affect the positions of assets alternative to the dollar.
Also, the serious growth of XRP is hindered by the uncertainty associated with the lawsuit of the US Securities and Exchange Commission (SEC) against Ripple. Recall that officials consider the token to be an unregistered security. Currently, both sides are awaiting a court decision, which increases tensions in the market. Trying to reassure investors, Ripple's management demonstrates confidence in its victory over the regulator, as stated by the head of the company Brad Garlinghouse last week, however, experts are not so optimistic and quite admit a negative verdict for Ripple, which could put significant pressure on the entire sector. It should be noted that SEC representatives have previously stated that, in their opinion, most modern cryptocurrencies are securities, therefore, if the court decision is favorable for the commission, lawsuits can also be filed against other digital assets.
Now the price is in the area of 0.3790, but in order to resume serious growth, it will need to break above 0.3906 (Murray level [8/8], the middle line of the Bollinger Bands). In this case, quotes can rise to 0.4150 (Murray level [+1/8]) and 0.4330 (Fibo retracement 23.6%). The key for the “bears” is the level 0.3662 (Murray level [7/8]), consolidation below which will give the prospect of further decline to the area of 0.3418 (Murray level [6/8]) and 0.3174 (Murray level [5/8]).
The downward trend in the market continues, which is confirmed by the downward reversal of the Bollinger Bands and the increase in the MACD histogram in the negative zone. The Stochastic reversed upwards, which does not rule out a price rebound to the 0.3906 area, but is unlikely to lead to a change in trend.
Resistance levels: 0.3906, 0.4150, 0.4330. | Support levels: 0.3662, 0.3418, 0.3174.