The Ripple (XRP/USD) price was not spared by the recent cryptocurrency sell-off. The coin is trading at $0.6080, which is the highest it has been since July last year. It has fallen by over 70% from its highest level on record, bringing its total market capitalization to over $29 billion.
Ripple loses momentum
Ripple is one of the biggest blockchain platforms in the world. It is a project that is significantly different than other cryptocurrencies like Bitcoin and Ethereum.
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For one, it is a highly centralized platform because of the outsize role of Ripple Labs. It is also a player in the remittances industry that makes its easy for people to send money around the world. Ripple Labs has partnered with the likes of Santander and SBI International to make it easy for people to send money abroad.
Like all cryptocurrencies, Ripple was not spared by the recent cryptocurrency sell-off. Its price has crashed to the lowest level since July last year.
The main catalyst for the performance of the XRP price is the fears of the Federal Reserve. In the past few months, the Fed has embraced a more hawkish tone as it attempts to lower the American inflation.
Therefore, analysts are concerned that the Fed actions will lead to a more difficult place for risky assets like Ripple and growth stocks. Indeed, the Ripple price sell-off has coincided with another sell-off in the Nasdaq 100 index, which is made up of the biggest growth stocks in the world.
Ripple price has also struggled because of the annoying lawsuit that was brought by the SEC. The SEC alleges that Ripple ran an unregistered capital raising campaign when it raised over a billion dollars. The lawsuit is expected to conclude in the coming months.
Ripple price forecast
The daily chart shows that the XRP price has been in a strong bearish trend in the past few months. This sell-off accelerated when the price moved below the support at $0.6520. It has managed to move below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. The Relative Strength Index (RSI) has also moved to the oversold zone.
Therefore, there is a likelihood that the Ripple price will stage a relief rally ahead of the upcoming Fed decision.
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