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

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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.

Are the bulls going to step in today, or are the bears going to continue their dominance ‼️

All to revealed today in 30 minutes #CPI pic.twitter.com/VhUHOXxYQH

— Crypto Tony (@CryptoTony__) May 10, 2023

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%.

US CPI coming in at 4.9%. Below expectations and down from 5% last month.

Pivot coming soon?

— Coin Bureau (@coinbureau) May 10, 2023

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.

Nope. CPI print today means Fed will need to continue hiking rates for another 6 months at the very least to get to their target. https://t.co/IYiVwe0CKH

— Facts Chaser 🌎 🤦🏻‍♂️ (@Factschaser) May 10, 2023

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.

XRP is obviously a security

It would have cost little for the Ripple team to have registered it as a security and played by the rules —- like everyone else in the industry does all day long $xrp pic.twitter.com/Yxga686tBZ

— @jason (@Jason) May 9, 2023

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.

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

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