The market reaction on the Fed's monetary policy continues to weigh on riskier assets such as BTC, XRP and Wall Street indices.
Bettter-than-expected US Q4 GDP supports the opinion of Fed's Chairman Jerome Powell that the US economy could cope with up to 4 interest rate hikes this year.
Bitcoin and altcoins such as Ripple have fallen since November, accumulating more than 50% loss. Ripple has an accumulation of more than 62% so far.
On January 22, Ripple fell to the low of 0.5457, just below the support of 2/8 Murray located at 0.5854. However, it managed to quickly recover and consolidate above this important support at 0.5859.
XRP is currently trading at 0.6042 just around the 21 SMA and above 2/8 Murray.
There is a positive outlook as long as it remains trading above 0.5859. A confirmation above 0.61 could give XRP the boost it needs to reach 0.7440, where the 200 EMA is located.
On the contrary, if in the next few hours Ripple comes back again, consolidates below 2/8 Murray, and trades below 0.58, then it could accelerate its bearish movement and could drop to 1/8 Murray located at 0.5049.
The eagle indicator, after having touched the extreme oversold zone on January 24, is giving a positive signal. The moving average is moving away from the low 5-point and a recovery of XRP is anticipated in the next few days.
Support and Resistance Levels for January 28 - 31, 2022
Resistance (3) 0.6511
Resistance (2) 0.6368
Resistance (1) 0.6155
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Support (1) 0.5799
Support (2) 0.5456
Support (3) 0.5052
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Scenario
Timeframe H4
Recommendation: buy above
Entry Point 0.61
Take Profit 0.6836 (3/8); 0.7440 (200 EMA)
Stop Loss 0.5750
Murray Levels 0.4883 (1/8) 0.5859 (2/8) 0.6836 (3/8) 0.7812 (4/8)
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