The Ripple price is staging a recovery rally a few days after it crashed by more than 55%. The XRP price is trading at $1.1966, which is more than 38% above its lowest level last week. Its market cap is at $51 billion, making it the fourth-biggest cryptocurrency after Bitcoin, Ethereum, and Binance Coin, according to data compiled by CoinMarketCap.
What happened: After a dramatic rally in the past few months, the Ripple price found a substantial resistance at $1.1960 after the Coinbase initial listing. This decline happened as part of the overall rout of the cryptocurrency industry.
This week, the XRP price will be affected by several factors. First, as it has done in the past few months, the currency has been affected by the ongoing SEC lawsuit. This will continue happening this week.
Second, like all currencies, the Ripple price will also be affected by the Fed interest rate decision. In the case of a hawkish Fed, we could see a major retreat and vice versa. This is simply because signs of tightening will see a rotation from risky assets like cryptocurrencies to bonds. So, what next for Ripple?
On the daily chart, we see that the Ripple price dropped sharply recently. That decline saw it test the important resistance at the 61.8% Fibonacci retracement level on April 23. Since then, the currency has bounced back to between the 50% and 38.2% Fibonacci retracement level. It is also between the 50-day and 25-day exponential moving averages (EMA).
Turning to the four-hour chart, we see that the XRP price has formed a descending channel pattern. In fact, it has tested the upper side of this channel pattern and is along the 50% retracement level. Therefore, in my view, the immediate outlook for the currency is bearish. We could see it drop and attempt to retest the lower side of the channel at $0.8650.
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