Popular altcoin XRP witnessed a 1.5% decline in the last 24 hours, trading around $0.47. This decline follows Bitcoin’s downward trend, nearing a critical support level. While Bitcoin’s potential dip below this support could impact the altcoin market negatively, XRP remains resilient.
Can XRP Rally by 55%?
An analysis of XRP’s price movement reveals a significant falling wedge formation nearing a breakout point. Over the past 396 days, XRP has consistently found support at this formation’s trend line. In the short term, XRP is trading at the lower end of a 20-day range, suggesting a potential rebound to test the $0.50 mark.
Technical indicators point to a bullish breakout for XRP due to the constrained space within the falling wedge. Should this breakout occur, XRP could climb to approximately $0.72, representing a notable 55% increase. Conversely, XRP’s positioning below the 50-day and 200-day simple moving averages on the daily chart indicates a risk of further decline.
What About the Spot XRP ETF?
Several factors could influence XRP’s price, including rumors about the potential approval of a spot XRP ETF in the US and a positive resolution for Ripple in its ongoing legal battle with the US Securities and Exchange Commission (SEC). These events could significantly bolster market sentiment and drive XRP’s price higher.
Ripple CEO Brad Garlinghouse recently criticized SEC Chairman Gary Gensler for comments made at the Bloomberg Invest event, suggesting that many cryptocurrency executives face legal challenges. Garlinghouse argued that such statements could negatively impact the political environment.
Key Takeaways for Investors
– A falling wedge breakout could lead to a 55% price increase for XRP.
– Current resistance at $0.50 could be retested soon.
– Critical support levels lie at $0.45, with additional support at $0.35 and $0.32.
– Potential approval of a spot XRP ETF and positive legal outcomes are catalysts to watch.
Increasing speculation about a spot XRP ETF, along with other positive factors, suggests potential upward movement for XRP. An ETF approval could significantly enhance the altcoin’s market performance and boost investor confidence, marking a pivotal moment for XRP.