- The XRP crypto price defied gravity on Tuesday.
- The US dollar index slumped to the lowest level in months.
- Ripple’s partners continued inking deals with other companies.
XRP price continued its recovery on Tuesday as demand for the payment crypto rose. Ripple rose to a high of $0.3742, which was the highest level since December 16. It has risen by more than 11% from the lowest level in December.
Ripple stages a strong comeback
XRP has made a strong comeback in the past few days as the US dollar index pulled back. The US dollar index, which provides a gauge of the greenback against a basket of currencies, dropped to $103 from the year-to-date high of $115.
In most cases, the US dollar index (DXY) has an inverse relationship with Ripple and other cryptocurrencies. Digital currencies tend to rise when the US dollar falls and vice versa.
The US dollar index has pulled back in sync with the performance of bonds. 10-year Treasury bonds has declined from the year-to-date high of 4.25% to 3.83%. Similarly, the 30-year and 2-year bond yields have dropped to 3.9% and 4.37% respectively.
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This performance happened as investors reacted to the positive American inflation data. Earlier this month, data showed that the headline consumer price index (CPI) dropped from 7.7% in October to 7.3% in November.
And last week, data showed that the country’s personal consumption expenditure (PCE) also continued dropping as gasoline prices dropped. These numbers mean that the actions of the Fed to fight inflation are working.
XRP price also rose because of the positive ecosystem news. Ripple was selected by Palao, a small country, to help it design its own national stablecoin. While Palao is a relatively small country, Ripple Labs will have an opportunity to prove that its technology works.
And last week, Frente Corretora, a Ripple partner, started a remittance relationship with MoneyGram. Tranglo, which Ripple partnered with in 2022, expanded in Malaysia. Another partner linked with JP Morgan to offer payment solutions in Malaysia.
XRP price forecast
The four-hour chart shows that Ripple price has staged a strong comeback in the past few days. As it rose, Ripple moved above the important resistance point at $0.35557, which was the highest point on December 23rd. It has also moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved close to the overbought level.
Therefore, the XRP price will likely continue rising as buyers target the next key resistance level a $0.40, which is about 10% above the current level.
