The decline continued on Friday, reaching a low of $1.19 as investors weighed a flurry of economic data and the Federal Reserve’s latest interest rate decision of the week.
The key events, including the release of the personal consumption expenditures price index on Thursday, which rose 0.5% monthly and 3.6% year-over-year, exceeding the Fed’s 2% target, had impacted the crypto markets alongside the news of Binance’s attack, which came a day after the central bank decided to hold its key interest rate steady.
The drop to $1.19 on Friday was met with a rebound, but bulls still didn’t gain enough strength to surpass the 200 DMA, with $XRP trading below it at press time.
All hopes is not lost
$XRP‘s drop below the 200 DMA raises fresh questions about the cryptocurrency’s near-term momentum, but it does not necessarily signal the end of its recovery prospects.
Traders are watching the $XRP price action for a hold above the weekly support at the 50 WMA to keep the bullish outlook intact. A breakdown of this support might see $XRP targeting $1 or even $0.98. On the other hand, if $XRP holds above its weekly support, it might reach $1.70.
In the financial markets, investors are looking ahead to some key jobs data in the coming days, including the October nonfarm payrolls report on Friday.
In a recent update, Binance, through its co-founder Yi He, stated it has allocated $6.34 billion from its own funds to buy up major cryptocurrencies including $XRP and $RLUSD.
In the current Binance user fund, $XRP and $RLUSD, alongside other major cryptocurrencies, have now achieved 100% reserve backing.
Leave a Reply