XRP Price News: $1.20 In Sight as Sell Signal Pops Up Below Key Level

XRP (XRP) has dropped by 0.2% in the past 7 days to $1.32 as macroeconomic conditions continue to deteriorate.

Analysts no longer expect that the Federal Reserve will cut interest rates this year, as market participants fear that higher oil prices could result in a spike in inflation levels.

Oil surpassed the $110 mark yesterday, and has increased to levels not seen since July 2022. Back then, crude rose from $70 to $120 while Bitcoin dropped from $50,000 to $17,000.

Hence, the impact of higher oil prices seems to be significant or, at least an early predictor, of how cryptocurrencies will behave in the future.

When oil rises, it typically means that macroeconomic conditions have worsened. In this case, this is the immediate impact of the Iran war. No interest rate cuts could lead to a prolonged distribution of risky assets, meaning lower crypto prices down the road.

XRP Lost 39% The Last Time that Oil Rose to These Levels

Similarly, XRP retreated from $0.80 to $0.49, meaning a 39% decline over a period of 9 months. If we expect a similar outcome in this case, we may see XRP dropping from $1.30 to $0.80 at least.

That said, the Relative Strength Index (RSI) was at a different level back in 2022. Back then, the oscillator stood at 45 in the weekly chart. Meanwhile, at the time of writing, XRP’s weekly RSI is sitting at 31.

This is significant as it may reduce the downside risk for XRP. Weekly oversold readings tend to mark the end of bearish cycles and we are quite close to hit that area.

The performance of cryptos in the near term will likely be determined by how the war situation evolves.

A prolonged conflict could definitely plunge cryptos to these levels. In contrast, if the U.S. reaches a deal with Iran to re-open the Strait of Hormuz, the price should decline rapidly.

XRP Could Drop to $1.20 as Institutional Volumes Pushed the Token Below Key Support

Trading volumes declined by 40% in the past 24 hours, to just 1.8% of the token’s circulating market cap, as XRP is rising by 1.5%.

We have emphasized multiple times that the $1.32 area is a highly contested level between bulls and bears.

Yesterday, a sell signal emerged in the 4-hour chart as the price dipped below this mark. This is commonly an indication that institutional volumes are backing the move. Hence, it increases the odds that this might be a true bearish breakout.

Moreover, the Relative Strength Index (RSI) recently dipped below 40, indicating that bearish momentum is accelerating.

Based on these technical readings, our near-term target for XRP would be $1.20, meaning a 9% downside risk. On the other hand, if the price manages to stay above this level, this could create room for a move toward $1.49.