- XRP extends rebound above $2.16 after Thursday’s 9% drop tested the crucial 200-day EMA support.
- US Unemployment rate steadied at 4.2% in May, with 139,000 jobs added, above forecasts.
- Multiple technical sell signals indicate that XRP is not out of the woods yet.
Ripple’s XRP has shown resilience by edging higher after experiencing a significant flash sell-off on Thursday. During this period, the broader crypto market cap dropped by 4%, culminating in a market value of $3.4 trillion. As of Friday, XRP managed to recover to approximately $2.17 after initially plunging 9%. This positive uptrend offers hope for further gains over the weekend, with traders setting their sights on the $2.50 target, bolstered by a more optimistic sentiment.
XRP Offers Signals of a Lasting Rebound as the US Adds 139,000 Jobs
In May, the U.S. economy added 139,000 jobs, surpassing forecasts that anticipated a gain of only 130,000. This data stems from the Nonfarm Payrolls report released by the Bureau of Labor Statistics (BLS). Although the job increase is promising, it did represent a slight decline from April’s 147,000, indicating a slow but steady labor market.
The unemployment rate remained constant at 4.2%, a figure close to historical lows. While this suggests a stable job market, there are signs of a potential economic slowdown, a factor that may influence the Federal Reserve’s interest rate decisions in the forthcoming days.
Prominent voices in economics, including Federal Reserve Chair Jerome Powell, have raised alarms about the long-term effects of tariffs imposed during the Trump administration. These tariffs could significantly impact economic growth and inflation.
Mark Zandi, Chief Economist at Moody’s Analytics, commented to NBC News with caution, stating, “We’re throttling back — and the damage from the trade war is still coming.” As future inflation data is expected to reflect rising costs driven by these import duties, companies anticipate heightened prices. A recent report by the Fed echoed this sentiment, noting that businesses expect costs and prices to rise faster in the upcoming period.
The volatility in the cryptocurrency market has been palpable over the past few weeks, influenced by escalating trade tensions and U.S. tariff concerns. Recently, a court’s decision to block certain tariffs led to additional uncertainty. Although an appeals court has allowed tariffs to continue temporarily, the global trade landscape remains delicate.
Technical Outlook: Could XRP Steady the Uptrend into the Weekend?
XRP’s price is currently benefiting from robust support provided by the 200-day Exponential Moving Average (EMA), which stands at $2.08. Trading at $2.17, the cryptocurrency appears to be in the midst of a recovery following Thursday’s market turbulence. Notably, the Relative Strength Index (RSI) is hovering near the neutral zone, approaching the critical 50 midline, which heightens expectations of continued bullish momentum.
Traders are closely monitoring the Moving Average Convergence Divergence (MACD) indicator for a potential buy signal, which would occur if the blue MACD line crosses above the red signal line. If the MACD ascends above the zero line, coupled with green histogram bars surpassing the same line, the trajectory for XRP could continue to be bullish.
A confluence of resistance from the 50-day EMA and the 100-day EMA at approximately $2.26 could act as a barrier to any price increase. However, if XRP breaks this resistance, it could see an upswing of up to 15%, potentially reaching the $2.50 mark. Beyond this, with supportive market sentiment, traders might even eye the psychological resistance level at $3.00.
XRP/USDT daily chart
The 4-hour chart’s RSI is also moving toward the 50 midline, further solidifying a short-term bullish outlook for XRP. While the MACD has yet to emit a buy signal, indications suggest that the upward trend could indeed hold.
XRP/USDT 4-hour chart
Conversely, various sell signals have been identified, prompting caution among traders. Additionally, XRP is still trading below critical moving averages, including the 50-period EMA, the 100-period EMA, and the 200-period EMA, indicating that the token could revert to a downtrend. This leaves room for potential losses or further market consolidation.
