Technology

Is May A Good Time To Buy XRP? – Crypto News

Published

2 years ago

April 30, 2024

Dripp

XRP price prediction: The sudden drop in crypto prices following the much-publicized Bitcoin halving is creating a lot of uncertainty in the market. The ‘nonstarter’ halving aside, market participants are more concerned amid the ongoing Federal Open Market Committee (FOMC) meeting, deliberating interest rates in the US.

What’s Likely To Happen To XRP After FOMC

The FOMC is expected to keep interest rates steady based on economists’ expectations at the end of the meeting on May 1. At the same time, general exceptions are that the Fed will hint at its reaction to the recent spike in inflation based on the Consumer Price Index (CPI) data.

Due to the persistent increase in inflation since December, caused by rising prices of goods and services, rate cuts are likely to be delayed until later in the year.

Moreover, the Fed’s path to 2% inflation will likely be a bumpy one, amid unresponsive economic indicators. Currently, annual inflation lies between 3 and 5% based on the metric used.

Meanwhile, assets in the crypto market are trading in precarious conditions. The rally in Q1 suggested that prices may continue to soar in the year bolstered by ETFs and Bitcoin halving.

However, the dilapidated outlook witnessed after halving is sinking holes in the hope for an immediate rally. Bitcoin price has corrected by 3% in 24 hours to $60,800, a significant drop from the ATH high of $73,837 in March.

Ethereum, the largest altcoin is also in the red with a 5.5% modest fall in the same period to $2,999. Other leading altcoins were engulfed by the headwinds, with Solana trading at $128, Binance Coin at $563, and Dogecoin at $0.1345.

Investors considering buying the most prominent cross-border money remittance token, XRP can take advantage of a 9% monthly discount after its value plummeted to $0.4974 on Tuesday, April 30.

According to CoinMarketCap, XRP’s 24-hour trading ticked up by by 11% to $1.16 billion, underscoring intent to sell among traders. This negative outlook mirrors a 3% decline in the market cap to $27.5 billion. XRP ranks #7 among other cryptocurrencies.

XRP Price Prediction: On The Outset Of More Losses

Trading below the crucial level at $0.5 could spell doom for XRP in early May. A retest of the next key support at $0.48 is expected this week, according to the Relative Strength Index (RSI) downward trend at 37.

XRP price prediction chart | Tradingview

Since XRP’s peak of $0.75 in March, the RSI has not broken above the downward trajectory as observed with the descending trendline resistance.

Some key levels likely to determine the next direction XRP takes are the potential RSI oversold conditions, and support areas at $0.48 and $0.45. Breaking below the latter level might trigger a larger sell-off meaning XRP price could slide to $0.42 to collect liquidity before resuming the uptrend.

Reclaiming support/resistance at $0.5 could offer an immediate reprieve to investors, and encourage buying the dip activities in early May. Such momentum-building activities would imply that buyers have an upper hand and can control the narrative fostering the upswing to $0.75 and $1 in due time.