The Ripple price is bouncing back as part of the overall rally of digital currencies. The XRP is trading at $0.5352, which is 19.45% above Wednesday’s low of $0.4500. Other cryptocurrencies like Bitcoin and Ethereum have also bounced back after yesterday’s sell-off.
What happened: The Ripple price has been relatively volatile this week. It started the week at the multi-month high of $0.600 and then plunged to $0.4500 on Wednesday and Thursday. It then bounced back and is trading at $0.5352. This price action is mostly because of the overall performance of the US bond market and the overall stronger US dollar.
This week, the 10-year bond yield declined to 1.62% after soaring to 1.74% in the previous week. At the same time, the US dollar rose to the highest level since November last year. A stronger US dollar tends to have a negative impact on Ripple and other assets like gold and silver.
The Ripple price has also risen after a judge overseeing the SEC case admitted that XRP could be both a currency and a utility. Still, there is no clear about who will win the case.
The four-hour chart shows that the XRP price has been relatively volatile lately. It is trading at $0.5335, which is slightly above the 25-day and 15-day exponential moving averages. It has also moved above the wide rising wedge pattern that was forming a while back. The average trure range (ATR), which is a measure of volatility has also risen.
Therefore, in my view, there is a possibility that the pair will keep rising as bulls target this week’s high at $0.6012, which is 13% above the current level. However, a drop below $0.4972 will invalidate this trend.
