XRP, Interest Rate Hike and Bill Failure 'Shockwave'...Even $1.30 is At Risk

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XRP is struggling to rebound near $1.30 amid weakening demand from individual investors and macroeconomic headwinds. While buyers are defending the short-term moving average support, a sell-dominant trend continues, preventing it from gaining clear upward momentum.

According to cryptocurrency media FXStreet on September 17 (local time), XRP has faced continuous downward pressure since rising to $1.50 last Monday. This is a result of the overall investor sentiment in the market being dampened after the US Senate failed to pass the US cryptocurrency market structure bill, and the Federal Reserve (Fed) raised the benchmark interest rate by 0.25 percentage points from 3.75% to 4.00%.

Despite regulatory headwinds, Ripple has emphasized its inherent legal stability and gone on the defensive. Ripple stated that it has achieved legal clarity by securing a ruling that XRP is not a security through its long-standing lawsuit with the Securities and Exchange Commission (SEC). Ripple explained, "In a situation where the US digital asset market operates without a legal framework due to the bill's rejection, an established legal status is a significant advantage."

Technical indicators point to short-term sideways movement and downside risk. XRP is testing support in the $1.25 to $1.28 range, where the 50-day and 100-day exponential moving averages (EMA) are located, but is blocked by resistance from the 200-day exponential moving average near $1.353. Additionally, with the Relative Strength Index (RSI) falling to a neutral 46 and the Moving Average Convergence Divergence (MACD) remaining in negative territory, the likelihood of range-bound stagnation is higher than a strong rebound.

Market experts analyze that XRP needs to break above the 200-day exponential moving average of $1.353 on a closing basis to resume its recovery towards the $1.90 resistance level. If the cluster of short-term support lines breaks, a further decline to the $1.00 level could occur, requiring a cautious approach for the time being.

[Article Key Summary]

-XRP showed weakness around the $1.30 level, falling from its high of $1.50 due to the impact of interest rate hikes and the failure of regulatory bills.

-Ripple emphasized the establishment of its non-security status through a court ruling, drawing a line against regulatory risks.

-Technical analysis suggests that if XRP fails to break the 200-day exponential moving average resistance, it could fall to the $1.00 support level.

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