Federal Reserve Chair Jerome Powell’s recent comments have impacted the cryptocurrency market, remarkably, the price of Ripple’s XRP. Reports indicate that the Federal Reserve intends to play a robust role in shaping the future of stablecoins. It implies that regulatory measures might be implemented to ensure stability, transparency, and consumer protection within the stablecoin market. In acknowledging the durability and staying power of the Bitcoin and crypto asset class, Powell highlighted cryptocurrencies’ significance and potential impact on the US economy.
Reserve intends to play a robust role in shaping the future. Powell’s statement indicates a push for regulations and oversight on stablecoins, potentially leading to market uncertainty and a sell-off of cryptocurrencies. XRP, in particular, faces additional concerns due to its ongoing regulatory challenges, including a lawsuit filed by the Securities and Exchange Commission against Ripple Labs, the company behind XRP, in late 2020. These regulatory clarity concerns have contributed to the recent decline in XRP’s price.
Recent Ripple price analysis shows the bears have been able to suppress the price levels below the $0.4800 level. The bears are reigning the price charts as the price has decreased again during the day. Currently, it is settled on the $0.4758 mark, down by 0.89% in the past 24 hours, with selling pressure all around.
The price has moved inside a descending channel formation, with the lower boundary support at $0.4746 and the higher boundary resistance at $0.485. A breakdown below this level could push Ripple toward the next significant support level of $0.4700, and if the bullish momentum picks up, XRP/USD could move toward $0.4900 in the medium term.
The Chaikin money flow score is -0.2, signaling market weakness. If the CMF line further drops below the zero mark, it could indicate strong selling pressure in the market. The RSI is at 47.16, indicating that there is no substantial pressure from bulls or bears as the price approaches the support area. The Bollinger bands have contracted, indicating a volatile market in the coming days. The upper limit is at $0.4932, and the lower limit is at $0.4736, which is a crucial level to watch.
Overall, the XRP/USD pair is currently trading just above the support area, and if this support is broken, the price could drop in the short term. The selling pressure is likely to intensify if the price drops below $0.4700; however, if the bulls manage to push the price above $0.4900, it could indicate a bullish trend in the coming days.
