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The XRP price pared back some of the recent gains after finding substantial resistance at the 50-day moving average. Ripple retreated to $2.5810, down from this week’s high of $2.6954. It has dropped by 30% from its highest point this year.
The Ripple price token will react to the upcoming Federal Reserve interest rate decision in which officials will deliberate on whether to cut interest rates or not.
Polymarket traders and economists believe that the bank will decide to cut interest rates by 0.25% in the meeting, bringing the benchmark rate to between 3.75% and 4%.
These Fed cut expectations have jumped after the recent economic numbers, including the deteriorating labor market and the fact that the US inflation is not rising as investors were expecting.
A report by ADP showed that the economy lost over 36,000 jobs in September, and just this week, companies like Amazon and UPS have announced over 28,000 layoffs as they take advantage of artificial intelligence.
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A Federal Reserve interest rate cut is bullish for the XRP price and the general crypto market because investors tend to embrace risky assets when the bank is cutting. This is one key reason why the coin has rebounded from its lowest level this month.
Ripple price has more potential catalysts, including the fact that the Securities and Exchange Commission allowed the trading of top crypto ETFs like Hedera, Litecoin and Solana. This means that it is just a matter of time before the agency approves numerous XRP ETFs.
Data shows that there is robust demand for the XRP ETFs as the recently launched XRPR ETF has accumulated over $117 million in assets in a month’s time. The XXRP ETF has also added over $400 million in assets.
The Federal Reserve interest rate cut and the XRPR ETF inflows are bullish for the Ripple price. However, there is a possibility that investors will sell the news after these news events.
Murrey Math Lines is a tool developed by Alex Wilder that helps traders to identify key support and resistance levels. It does that by identifying 13 key levels based on the Gann theory.
In this case, the XRP price has dropped to the strong pivot reverse point of the Murrey Math Lines. Also, the coin found substantial rejection at the 50-day Exponential Moving Average and remains below the supertrend indicator.
XRP also formed an evening star candlestick pattern, which is a common bearish reversal sign. Therefore, the most likely scenario is where it continues falling, potentially to the ultimate support level at $2.3438.
On the flip side, a move above the upper side of the evening star candle will point to more gains, potentially to the ultimate resistance at $3.125.
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