Due to the forefront of cryptocurrency in these adverse factors, interest and purchasing power may weaken, allowing bears to dominate and potentially trigger room for new lows in 2022, erasing the slight gains of November and December.
Before prices fell about 0.37% to $17, bulls may be overwhelmed and eventually squeezed out around $0.30.
A series of events triggered by the lack of results from the European Central Bank meeting is about to collapse the price of XRP, as Lagarde promised to raise interest rates as little as possible, disappointing the market, while other central banks globally collectively raise rates to cool inflation.
The significant systemic risk generated by this has led to a massive strengthening of the US dollar, sweeping the entire market and causing investors to flee cryptocurrencies. In other words, the strong US dollar has not fully affected all cryptocurrencies yet, and XRP prices still face delayed adjustments.
XRP’s price is expected to first drop to $0.37, which was the bottom for most of November and December. We expect this level to provide some support but be breached nonetheless.
Breaking below this level will open up a rather wide downside area, with the nearest support at $0.30. In percentage terms, this means a loss from $17 to $0.37 of 0.30%.
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What to expect in the cryptocurrency market this month?
Furthermore, as XPR’s price continues to trade between $0.37 and $0.42, there is still a possibility of an upward breakout this week, and several cryptocurrencies have already shown trends deviating from the current dollar value.
This could be quite positive for cryptocurrencies like XRP, and even in a declining stock market, it could lead to a possible rebound. The upward target is set at $0.48.
