XRP price started the week slightly lower on Monday as investors brace themselves for a week of key economic data and central banks meetings. At press time, XRP was trading 0.40% lower at $0.5186, wiping some of the gains it made on Sunday. Even so, the asset’s total market cap has jumped more than 2% over the last day to $27 billion, while its total volume increased by 3.26%. XRP currently ranks 6th, above Cardano.
Crypto Market Sentiment
Despite dipping by more than 3% over the past week, XRP price has remained nearly 53% higher in the year to date. The cryptocurrency market has shown signs of stability since Sunday after a massive sell-off last week buoyed by the US SEC lawsuit against Binance and Coinbase. Over the past day, some tokens have continued dropping but at a much slower pace, while others staged strong recoveries.
XRP price has edged slightly higher over the weekend, jumping above the major hurdle at $0.5000. However, the digital asset remains more than 11% below its highest level this year. Crypto heavyweights, Bitcoin and Ethereum, have slightly improved but remain below their critical support levels. Data by Coinmarketcap shows that the global crypto market cap has increased slightly over the past 24 hours to $1.06 trillion, while the total crypto market volume remains 11.55% lower.
Investors have shifted their focus this week to policy meetings by the Federal Reserve, the Bank of Japan, and the European Central Bank. The tone of the central banks will set the tone for this week as markets seek clues from policymakers on the outlook of interest rates.
Markets will also be closely watching the US Consumer Price Index (CPI) data for May set to be released on Tuesday when the US Federal Reserve will commence its two-day policy meeting. Analysts expect the monthly inflation to have reduced to 0.2% in May, while the annual inflation inches lower to 4.1%, down from 4.9%. According to the CME Fed Watch tool, money markets are leaning towards a pause in the Fed’s interest rate hike campaign in June.
XRP Price Analysis
The daily chart shows that the XRP price has been trading sideways for the past few days amid the recent sell-off in the crypto market. The digital currency is currently hovering slightly above the crucial support level of $0.5. XRP has managed to remain above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its RSI is currently at 56 but below the signal line.
Therefore, a hawkish Fed will see the XRP price pull back further, while a pause in interest rate hikes might give bulls momentum to push the price higher. A continuous uptrend will have buyers eyeing the next resistance level at $0.5850. On the other hand, a move below the critical support at $0.500 will invalidate the bullish thesis.