The Ripple price is eyeing key support and could dip with commodities if comments from the Jackson Hole economic event can soothe inflation fears.
Like the rest of the cryptocurrency market, Ripple has benefited from the rally that was driven by weakness in the U.S. dollar. This rally was part of a simple revaluation between the crypto to USD pairs, but it was also driven by a run in commodities and alternative assets based on safe haven demand and fears of inflation driven by the sharp rise in the balance sheets of the world’s central banks.
As I noted in my gold price article, the Kansas City Federal Reserve hosts the annual Jackson Hole, Wyoming economic event. Although this year’s event is a virtual meeting, it will still feature the input of Fed officials and finance ministers from around the world with over 100 delegates expected to participate.
The event will discuss economics and monetary theory for the next ten-year period and markets often move on interviews and comments that come from the two-day meeting.
The recent sharp rise in commodities such as gold and silver may be of concern to the central bankers, who could see this as an opportunity to take the wind from the sails of a move that suggests their policies are going to lead to inflation further down the line.
Ripple Price Technical Outlook
For Ripple, this could mean a further bounce in the U.S. dollar, which would weigh on Bitcoin and the rest of the market after the recent strong performance.
XRPUSD is trading at $0.2819 just ahead of support at $0.2800, which provided support twice in the last few weeks. Drawing fibonacci retracement levels from the mid-March low to the August high at $0.3283 provides a 38.2% support level at $0.2400, with a 50% support at $0.2200. These would be the nearest targets for a pullback, but if the $0.2800 support holds then a retest of the August high is possible in the weeks ahead.