XRP price has been under intense pressure for the past few weeks as concerns about US regulations and Fed interest rate hikes persist. At the time of writing, the altcoin had tilted 2.60% lower to $0.3674. Ripple has shed more than 5% over the past week but its year-to-date price remains 8.35% higher. The cryptocurrency currently ranks as the 6^th most valued digital asset by market cap after USD Coin and ahead of Cardano.

Fundamentals

XRP price has been range-bound for the past few days as concerns about its lawsuit with the US Securities Exchange Commission (SEC) continue to weigh on the cryptocurrency. Ripple has been in a legal battle with the SEC for over two years. The SEC filed a complaint against Ripple Labs, claiming that XRP is a security and that the firm offered it to investors without legal registration.

Over the past months, the lawsuit’s outcome has become increasingly unpredictable, prompting traders to be cautious. Markets have been in talks concerning the regulation of all altcoins by the SEC, yielding some level of uncertainty among the altcoins. Even so, investors expect the XRP price to remain bullish in the long term.

Fears about the US Federal Reserve further hiking its interest rates have left many investors worried. According to remarks by some of the Fed officials, the Fed will have to raise its key interest rate higher than expected if the recent trend of strong job growth, consumer spending, and inflation persists. Futures traders have said that the interest rate might get to a range of 5.50%-5.75%, higher than the predicted 5.25%-5.50%.

The overall crypto market was in the red on Friday as shares of the crypto-focused bank Silvergate Capital wiped more than half of its value. The bank recently announced that it was evaluating its ability to survive as a going concern. Concerns about the bank’s health have been rising recently following the collapse of FTX which was a banking client.

The firm’s announcement saw cryptocurrencies tumble, led by the largest digital asset Bitcoin. Altcoins such as Ethereum, Tether, Polygon, Solana, Litecoin, and Polkadot, among many others, have also suffered declines. Many digital asset exchange platforms including, Coinbase and Galaxy Capital have said that they would no longer be accepting or initiating payments through Silvergate.

XRP Price Outlook

The daily chart shows that the XRP price has been under pressure for the past few days, trading in a tight range between $0.3835 and $0.3665. The altcoin has moved below the 25-day, 50-day, and 100-day moving averages. Its Relative Strength Index (RSI) has moved below the neutral zone, hinting at a decrease in buying pressure.

Therefore, putting all the fundamentals into consideration, the Ripple price is likely to inch lower in the short term as sellers eye the next support at $0.3440. A breach of the aforementioned support level could have the price pullback further to the next support level at $0.3225. However, a flip past the key resistance at $0.400 will invalidate my bearish thesis.