Why Did XRP Price Drop Today?

XRP (XRP) prices declined today, mirroring trends elsewhere in the cryptocurrency market as traders await the Federal Reserve’s interest rate decision this week.

XRP Price Drops Amid Rising Dollar Strength

On July 24, the price of XRP fell by 8% to $0.68, which was less than the 3.5% decline of the crypto market on the same day. The XRP/USD pair fell in the middle rising expectations That the Fed will hike rates by 25 basis points at its July 25-26 meeting.

XRP/USD vs daily crypto market performance chart. Source: TradingView

A high rate environment Considered bad for cryptocurrencies like XRP. As a result, some traders have moved away from high-capitalization cryptos to the refuge of safe assets. U.S. Dollarselling at the peak of Ripple led market rally On 13 July.

For example, on July 13, XRP price increased by 75% but failed to extend its gains above $1. Since then, the price of the coin has declined by 28%. On the other hand, the US Dollar Index (DXY) gained almost 2% during the same period.

Meanwhile, the correlation coefficient between DXY and XRP was -0.79 on July 24, compared to +0.25 on July 13, indicating a higher probability of further downside for XRP if the dollar continues to rise in the coming months.

Daily correlation coefficient between DXY and XRP. Source: TradingView

What’s next for XRP price in July?

From a technical perspective, XRP has entered an extreme correction phase after the weekly Relative Strength Index (RSI) surged to 72 last week, its highest level since April 2021.

XRP/USD weekly price chart. Source: TradingView

In a bearish scenario, the price of XRP will drop to $0.59 in July or early August. This level served as a support during the July 2021-January 2022 session and is also the 0.236 Fibonacci line of the Fibonacci retracement chart of the coin (drawn from the $1.15 swing high to $0.30 swing low).

Connected: XRP Price May Fall 40% By September – Fractal Analysis

Conversely, a decisive close above the 0.382 Fibonacci line near $0.77 could see XRP recapture the $1 resistance to gain nearly 30% from its current price level.

This article does not constitute investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research when making decisions.

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