XRP (XRP) price is falling today, mirroring trends elsewhere in the cryptocurrency market, as traders await the Federal Reserve’s decision for the week.
XRP price falls as dollar gains strength
On July 24, XRP fell 8% to $0.68, outpacing the crypto market’s 3.5% drop on the same day. The XRP/USD pair was falling in the middle rising expectations that the Fed will raise interest rates by 25 basis points at its July 25-26 meeting.
AND higher rate environment it is considered bad for cryptocurrencies like XRP. As a result, some traders have abandoned high-cap cryptocurrencies to seek shelter in safer assets such as American dollarsale at the top Ripple-led market rally on July 13.
For example, the price of XRP rose 75% on July 13, but failed to extend its gains above $1. Since then, the price of the token has fallen by 28%. On the other hand, the US dollar index (DXY) rebounded by almost 2% over 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 greater likelihood of further declines in XRP if the dollar continues to rise in the coming months.
What’s Next for the XRP Price in July?
Technically, XRP has entered an overbought correction phase after its weekly Relative Strength Index (RSI) climbed to 72 last week, the highest level since April 2021.
A bearish scenario will see the XRP price drop towards $0.59 in July or early August. This level was support during the session between July 2021 and January 2022 and is also the 0.236 Fib of the Fibonacci retracement line of the token’s chart (drawn from the $1.15-swing high to the $0.30-swing low).
Related: XRP Price May Fall 40% By September — Fractal Analysis
Conversely, a decisive close above the 0.382 Fib line near $0.77 could see XRP retest the $1 resistance to gain around 30% from current price levels.
This article does not contain investment advice or recommendations. Every investment and trading step involves risk and readers should do their own research when making decisions.