Current trend

During the Asian session, the XRP/USD pair is trading within the “triangle” pattern with dynamically narrowing boundaries of 0.5900–0.5050.

The crypto assets were pressured yesteray by the US inflation report, which, as expected, confirmed the likelihood of a 25 basis point reduction in borrowing costs by US Federal Reserve officials at a meeting on September 18: in particular, a sharp slowdown was recorded in August from 2.9% to 2.5% with a forecast of 2.6% YoY and growth of 0.2% MoM, while the basic indicator excluding food products and energy remained at the level of 3.2% YoY and slightly accelerated from 0.2% to 0.3% MoM. It is worth noting that the rhetoric of the officials confirms their "dovish" attitude: two weeks ago, US Fed Chairman Jerome Powell said that the time had come to ease monetary parameters, given the progress in the fight against inflation and the slowdown in the labor market, and his opinion was supported by Christopher Waller, a member of the regulator's Board of Directors.

In turn, the head of Ripple, Brad Garlinghouse, announced at Korea Blockchain Week the launch of the RLUSD stablecoin in the coming weeks, which is currently undergoing the final stage of testing on the XRP Ledger and Ethereum blockchains. The coin will be backed by US dollar deposits, as well as short-term US government treasury bonds, and, according to the developers' plans, will reduce the gap between traditional and decentralized finance, but according to the statement of Ripple CTO David Schwartz, it will only be available to legal entities. Analysts believe that this decision will avoid attracting additional attention from regulatory authorities to the instrument and will protect retail investors during excessive volatility in the market. Brad Garlinghouse advised startup management to avoid launching a business in the US jurisdiction in order to avoid lawsuits from the US Securities and Exchange Commission (SEC). Against this backdrop, during the XRP Community Day in Tokyo, the head of Ripple noted Japan's “clear regulatory framework and constructive policies”, which not only drives innovation but also includes mechanisms to protect customers from potential financial losses. Garlinghouse is confident that yen-pegged stablecoins will become popular soon amid the growth of the cryptocurrency market in Asia, where Japan plays a key role.

Support and resistance

Asset quotes are trading within the "triangle" pattern with dynamically narrowing boundaries of 0.5900–0.5050, preparing for another attempt to test the support line.

Technical indicators are holding the sell signal: the EMA oscillation range on the Alligator indicator is still directed downwards, and the AO histogram is trading in the negative zone, forming new correction bars.

Resistance levels: 0.5510, 0.6210.

Support levels: 0.5230, 0.4680.

Trading tips

Short positions can be opened after the price consolidates below the support level of 0.5230 with a target of 0.4680 and a stop-loss of 0.5400. Implementation period: 7 days or more.

In case of a reversal and continuation of the corrective growth, as well as consolidation of the price above the resistance level of 0.5510, buy positions with a target of 0.6210 and a stop-loss of 0.5300 will be relevant.