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Ripple Price Could Scale A Recovery Rally As Crypto Market Reacts To Positive US Consumer Price Index Reading

Ripple (XRP) Price
Ripple (XRP) Price

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Ripple (XRP) price has turned bullish as the cryptocurrency market reacts to the positive Consumer Price Index (CPI) reading. The remittance token flashed green on the one-day chart below, with XRP exchanging hands for $0.43- a daily rise of almost 2%.

The new bullish resurgence comes from Bitcoin dominance and its correlation to stocks. Bitcoin is also up almost 2% to trade at $28,184 following the United States Federal Reserve revealing the CPI Inflation reading for April.

Ripple Price Turns Bullish US CPI Inflation Comes In As Expected

Ripple price is enjoying the positive US CPI Inflation reading. CPI is one of the many inflation gauges the Fed uses to determine interest rate hikes. At exactly 12:30 GMT on Wednesday, May 10, the Fed announced that the CPI inflation came to 4.9%.

With the reading coming at 0.1% lower than what economists anticipated, the 4.9% CPI inflation shows that consumer prices remained elevated in April, fairly consistent with the levels witnessed in March at 5.0%. Regardless, the 4.9% is still above the Fed’s 2% target, inspiring recent decisions to raise interest rates as the department works to bring down inflation.

Notably, the Fed hinted at a possible pause in hikes on May 3 during the Federal Open Market Committee (FOMC) meeting, citing intentions to evaluate incoming data before the June meeting. It is important to note that there will be one more CPI release before the next FOMC meeting, as June’s report will be released the day before the Fed rate decision.

Impact Of CPI Report On Crypto And Ripple Price

The release of US CPI data has put Bitcoin price’s anticipated recovery to the $30,000 level to the test as bulls react to the weakening US dollar. A higher-than-expected increase in monthly CPI could have made the Fed reconsider its monetary stand, fueling a USD buying spree across the board. This would be destructive and bearish for Bitcoin and crypto at large.

However, as the CPI inflation came in lower than expected, the outcome has seen the cryptocurrency market position itself for a dovish Fed policy shift. This explains why the crypto market appears to be under renewed buying pressure.

Ripple price has reacted to the data along with several other crypto assets. If the bullish momentum sustains, XRP could ascend further and record more gains for investors.

Meanwhile, the XRP market still lacks sufficient momentum for a strong uptrend, given the absence of updates from the Courts in Ripple’s case against the Securities and Exchange Commission (SEC). On May 9, venture capitalist Jason Calacanis brought Ripple CEO Brad Garlinghouse back into the limelight with a Twitter post.

In his response to the twee, Garlinghouse said:

Remind me when you learned securities law? This is embarrassing for you (and hilariously wrong as there is no framework to register digital assets in the US), but we’re all used to you making controversial statements and trolling about things you know nothing about….

The response reflects the significance of the SEC v Ripple case to Ripple and the US crypto market. Nevertheless, investors continue to track the case via crypto news wires and Twitter, expecting court rulings from the case will come soon. Undoubtedly, the lack of case updates will likely continue to influence buyer appetite.

Ripple price prediction: Is This The Beginning Of A New Bull Run

Ripple price appears to have found a pivot around the $0.41 support level, and now bulls are attempting a recovery rally. The price is currently confronting the immediate hurdle due to the 100-day Simple Moving Average (SMA) at $0.43, where sidelined investors could hop in.

If the above narrative plays out and investors buy XRP at current rates to avoid missing out on what could be the next bullish run, the Ripple price could soar. An increase in buying pressure above the current level could set the tone for the remittance token to reach the $0.47 resistance level.

Notably, another cohort of investors sits at the 50-day SMA at around $0.48. If this group also buys XRP at the $0.47 level, Ripple price could continue northbound, rising above the $0.50 psychological level to tag the $0.54 resistance level. Such a move would denote a 25% climb from the current price.

Notice that the Relative Strength Index (RSI) had just tipped upward, indicating a more bullish effort. If the current accumulation pattern among XRP bulls continues, the RSI could soon escape above the mean line into the positive zone.

Ripple price
TradingView CHart: XRP/USDT 1-Day Chart

Converse Case For Ripple Price

Conversely, relieved that the Ripple price has rallied back to breakeven, investors may want to snatch at early profits. This would interrupt the bullish momentum for XRP. An increase in selling pressure could see the altcoin lose the immediate support at $0.41, falling back into the supplier congestion zone between $0.41 (above) and $0.35 (below).

A fall into this territory could see Ripple price trade horizontally, considering how long XRP was trapped within this zone- almost five months between November 8 and March 20.

The position of the RSI in the negative zone suggested that bears were still leading the XRP market. Similarly, the Moving Average Convergence Divergence (MACD) was also in the negative territory, indicating bearish dominance.

XRP Alternative

While Ripple price continues pushing toward the $0.57 target, consider Ecoterra, a blockchain ecosystem for user rewards and company action on climate change. The Ecoterra project has raised over $3.4 million in presale sales for the ECOTERRA token. It is the latest green crypto project set to leverage blockchain technology while encouraging people to recycle.

Ecoterra is an all-in-one Recycle2Earn app featuring recycling tokens and ecology actions. It also features recycled materials and carbon offset marketplaces, among others. These serve to empower companies and reward consumers.

The hallmark of the project is to save the planet, which is why it wants to tackle the worsening effects of climate change. To this end, the Ecoterra ecosystem actively encourages people to embrace tree plantation, waste management, and cleanups. The project plans to eliminate the bottlenecks making people unwilling to take eco-friendly measures. Blockchain tech is the choice tool as it educates people on green initiatives and incentivizes them to recycle.

Also Read:

Ecoterra - New Eco Friendly Crypto

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