- XRP price has pulled back sharply this week.
- The price action is in sync with that of other cryptocurrencies like Ethereum and Bitcoin.
- Ripple Labs reached a partnership deal with FOMO Pay.
The XRP price continued its bearish trend on Tuesday as the recent cryptocurrencies rebound faded. Ripple declined to a low of $0.3318, which was the lowest level since July 16th of this year. It has dropped by more than 13% from its highest level last week, given it a market cap of over $16 billion.
Cryptocurrencies and stocks sell-off
The XRP price declined sharply as the prices of most cryptocurrencies recoiled. Bitcoin dropped below $1,200 while Ethereum moved below $1400 for the first time in more than a week.
The current sell-off was triggered by the overall sell-off in American stocks as the earnings season continued. Last week, Elon Musk said that Tesla had sold some of its Bitcoin investments as its costs increased.
Most companies like Walmart and JP Morgan have published relatively weak earnings, pushing the Dow Jones and Nasdaq 100 indices lower. In the past few months, Bitcoin has had a close correlation with American indices.
The XRP price is also falling as investors wait for the upcoming interest rate decision by the Federal Reserve. The bank is expected to hike interest rates by another 0.75% in its bid to fight against the rising inflation.
Learn more about how to buy Ripple online.
Meanwhile, Ripple continued inking deals to improve its RippleNet platform. On Monday, the company said that it reached a partnership agreement with FOMO Pay, a Singapore-headquartered company. The company will use Ripple's On-Demand Liquidity (ODL) solution to improve its cross-border treasury flows. In a statement, FOMO Pay's CEO said:
“We are excited to partner with Ripple to leverage On-Demand Liquidity for treasury management, which allows us to achieve affordable and instant settlement in EUR and USD globally.”
Other companies using Ripple's ODL service are iRemit, Tranglo, and SBI Remit. By so doing, the companies are able to provide faster remittance solutions at a significantly lower cost.
XRP price prediction
The four-hour chart shows that the XRP price rose to a high of $0.3815 last week. This price was the highest level since June 25th.
Now, the coin has moved below the 25-day and 50-day moving averages, signaling that bears are now in control. It has also retested the important descending trendline that is shown in blue.
At the same time, the Relative Strength Index (RSI) has moved below the oversold level. Therefore, the coin will likely continue falling as sellers target the next key support level at $0.300, which is about 8% below the current level.
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