$XRP Ripple price rises ahead of RLUSD launch, but a reversal is possible
The potential risk for the Ripple price is that users may sell the news. This is a situation where users buy an asset in anticipation of a major event and then sell it when it happens. A good example of this is what happened after the last Bitcoin halving in April. Bitcoin rose ahead of the halving and then retreated after it happened.
Another technical risk for XRP is a developing double-top pattern at $2.90. A double-top is a bearish chart formation that often precedes a price pullback. In this case, XRP may hit $2.90 and then retrace to its neckline at $1.90.
Furthermore, the coin could experience mean reversion, where the price falls back toward its key moving averages. Currently, XRP trades about 60% above the 50-day moving average, increasing the likelihood of a correction.
Conversely, a move above the double-top resistance at $2.90 would invalidate the bearish outlook and could propel XRP toward the $5 level.
