The XRP price pared back some of the recent gains after finding substantial resistance at the 50-day moving average. Ripple retreated to $2.5810, down from this week’s high of $2.6954, while dropping by 30% from its highest point this year.
XRP Price to React to Fed Decision
The Ripple price token is expected to react to the upcoming Federal Reserve interest rate decision, in which officials will deliberate on whether to cut interest rates or not.
Polymarket traders and economists believe that the bank will decide to cut interest rates by 0.25% in the meeting, bringing the benchmark rate to between 3.75% and 4%.
These Fed cut expectations have jumped after the recent economic numbers, including the deteriorating labor market and the fact that US inflation is not rising as investors had expected.
A report by ADP showed that the economy lost over 36,000 jobs in September. Just this week, companies like Amazon and UPS announced over 28,000 layoffs as they leverage artificial intelligence and automation.
READ MORE: Bitcoin’s JEPI ETF Yields 63%: Is BTCC a Good Fund to Buy?
A Federal Reserve interest rate cut is bullish for the XRP price and the broader cryptocurrency market, as investors tend to favor riskier assets when the bank cuts rates. This is one key reason why the coin has rebounded from its lowest level this month.
The Ripple price has more potential catalysts, including the fact that the Securities and Exchange Commission has allowed the trading of top crypto ETFs, such as those for Hedera (HBAR), Litecoin, and Solana. This means that it is just a matter of time before the agency approves numerous XRP ETFs.
Meanwhile, data show that there is robust demand for the XRP ETFs, as the recently launched XRPR ETF has accumulated over $117 million in assets in its first month. The XXRP ETF has also added over $400 million in assets.
The Federal Reserve interest rate cut and the XRPR ETF inflows are bullish for the Ripple price. However, there is a possibility that investors will sell the news after these news events.
Ripple Price Murrey Math Lines Analysis
Murrey Math Lines is a tool developed by Alex Wilder that helps traders identify key support and resistance levels. It does that by identifying 13 key levels based on the Gann theory.
In this case, the XRP price has dropped to the strong pivot reverse point of the Murrey Math Lines. Also, the coin found substantial rejection at the 50-day Exponential Moving Average and remains below the supertrend indicator.
XRP also formed an evening star candlestick pattern, which is a common bearish reversal sign. Therefore, the most likely scenario is that it continues to fall, potentially to the ultimate support level at $2.3438.
On the flip side, a move above the upper side of the evening star candle will point to more gains, potentially to the ultimate resistance at $3.125.
READ MORE: MSTR Stock Double-Top Points to a Crash After Strategy’s Junk Rating
