During last week and the first days of this week, the cryptocurrency market was influenced by the news about Ethereum and its merge. While many were waiting for a bullish sentiment for Ethereum, it deflated following its completion triggering a selloff. Ahead of the Fed meeting, overall cryptocurrency prices scaled as risk appetite fell. However, after the meeting and FOMC announcement, risk sentiment increased, affecting stock markets and crypto markets alike.
What happened to Ripple and its overall outlook?
While Bitcoin price dropped below the key $20,000 support level last week and even tested the weekly low at 18,250 US dollars on Wednesday, after the Fed meeting, BTC declined further, breached the support at $19,200 level, to test its lowest price since June 19 at 18,120 US Dollars.
Ethereum’s price movements were alike with BTC after falling below the critical level of $1,550; the decline continued to fall, towards 1,215 USD on Wednesday. If Ethereum’s price decline continues, it may encounter support further down at the psychological level of $1,000. On the flip side, in an uptrend, bulls need to catch the 1,420 USD first, and then they can watch the 1,640 level as the next resistance.
This week, XRP price reflects a near 57% gain to touch the 0.5566 USD since Monday before falling to the current price of $0.4868. The main reason for such a vast gain was its lawsuit with Sec and news around that. “According to defense lawyer James K. Filan, on Sept. 18, Ripple Labs filed a motion for summary judgment — a legal process that involves the court making a final decision based on the provided facts, rather than ordering a trial — and a decision on whether XRP is a security is expected by mid-December.”
Steep rate hikes by FED, BoE, and some other central banks, increase global recession concerns, putting pressure on risk assets. While a 75 basis point rise in the US Central Bank’s interest rates has already been priced in by markets, economic outlooks and expectations for another 75 basis point rate hike in the following meeting impact cryptocurrency prices. For now, we do not have enough reasons to change the outlook and estimates, so we should still count on our general bearish outlook.