Is XRP Going To Rise in Sept. 2024?
NOIDA (CoinChapter.com)— Ripple (XRP) price remained near $0.6 but failed to recover from the market crash at the start of Aug. 2024. Absent a miraculous rally, the token is likely to close the month with losses of around 9% or more.
Although the token has had a poor month, the XRP coin price could be ready for a rally as it includes some bullish cues.
XPR Price Has Bullish Cues Lined UP
Several factors support XRP’s prospects for September. The potential Federal Reserve rate cut could be a bullish signal for riskier assets like crypto, leading to a rally in the wider market.
In this scenario, the XRP crypto token could become an attractive diversification option for investors looking to expand their portfolios beyond Bitcoin and Ethereum. Anticipating a rate cut is significant as it could create a more favorable environment for risk assets, including cryptocurrencies.
While not immediately reflected in XRP’s price, Ripple’s recent legal victories provide crucial regulatory clarity that could drive a reassessment of the token’s value among investors.
The clarity reduces the legal risks of holding XRP coins, potentially leading to increased institutional interest. As the market digests these outcomes, the XRP crypto token could see a delayed but meaningful price increase.
XRP supply distribution by balance of addresses. Source: Santiment
Moreover, there has been significant accumulation among large XRP holders, a bullish signal often preceding upward price movements. This accumulation reflects growing confidence in XRP’s future performance.
Additionally, the upcoming launch of Ripple USD (RLUSD) could be bullish for XRP as it enhances market liquidity and expands XRPL’s ecosystem. The stablecoin would help strengthen XRP’s utility in cross-border transactions and DeFi applications, potentially driving demand.
Technicals Serving As Bullish Cue
Meanwhile, the XRP USD pair has formed a bullish technical pattern called the ‘ascending triangle pattern.‘
The pattern occurs when a horizontal resistance line connects swing highs while an ascending trendline links higher swing lows. This setup suggests increasing buying pressure as the price approaches the resistance level.
XRPUSD pair formed a bullish pattern with a 73% upside target. Source: Tradingview
The significance of this pattern lies in the potential for a breakout. A surge in trading volume as the price nears the resistance level typically confirms the likelihood of a breakout above it.
The ascending triangle formation indicates that buyers are gaining strength, and a successful breakout could lead to further upward momentum for the XRP USD pair. This technical setup provides a clear framework for assessing potential price movements in the near term.
In technical analysis, the pattern’s price target is calculated by measuring its height and projecting it from the breakout point. For the XRP crypto coin, this calculation suggests a price target near $0.98, a spike of 73% from the current level.
XRP is currently testing the pattern’s upper trendline resistance.
But Bearish Risks Remain
Despite the bullish indicators, XRP faces several risks. Historically, September has been challenging for the token, with a tendency towards bearish price action.
XRPUSD price action during September.
Since 2013, XRP prices have been bearish six times during September, while the month has been good for the token five times. This is a close race, and the outcome will largely rest on how the Ripple token reacts to various market forces.
If the Federal Reserve does not cut rates or the macroeconomic conditions worsen, XRP could struggle to maintain its current levels. Furthermore, an appeal by the SEC could also sour investors’ moods, resulting in a bearish month for the token.
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