Due to being at the forefront of these adverse factors, interest and purchasing power in cryptocurrencies may weaken, allowing bears to dominate and potentially provide room for new lows in 2022, thus erasing the small gains seen in November and December.
Before prices dropped by about 0.37% to $17, bulls may be overwhelmed and eventually squeezed out at around $0.30.
A series of events triggered by the inconclusive European Central Bank meeting is about to collapse XRP prices, with Lagarde promising as little rate hikes as possible, disappointing the market, while other central banks globally collectively hiking rates to cool inflation.
The significant systemic risks arising from this have triggered a massive strengthening of the US dollar, sweeping across the entire market, causing investors to flee from cryptocurrencies. In other words, the full impact of the strong US dollar has not yet affected all cryptocurrencies, and XRP prices still face delayed corrections.
XRP prices are expected to first drop to $0.37, which was the baseline for most of November and December. We expect this level to provide some support but will still be breached.
Breaking below this level will open up a fairly wide downside area, with the nearest support at $0.30. In percentage terms, this means a loss of 0.30% from $17 to $0.37.
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What to expect in the cryptocurrency market this month?
Furthermore, as XRP prices are still trading between $0.37 and $0.42, there is still a possibility of an upward breakthrough this week, as several cryptocurrencies have already shown trends deviating from the current US dollar value.
This could be quite positive for cryptocurrencies like XRP, and even in a declining stock market, it could lead to a possible rebound. The upward target is set at $0.48.
