Dec 11, 2024
6thTrade
XRP’s momentum has significantly uplifted following the U.S. presidential election results, further fueled by Ripple CEO Brad Garlinghouse’s announcement via X (formerly Twitter) about their stablecoin, RLUSD, receiving approval from the New York Department of Financial Services. This nod aims to position Ripple prominently within the $200 billion stablecoin market, expected to expand to nearly $3 trillion over the next five years.
The news spurred a 23% rise in XRP’s price from recent lows, just hours before this announcement. Despite this surge, the coin faced resistance at $2.9 and has since pulled back to above the $2.2 support level, marking a 19.41% retracement.
Technical indicators show mixed signals; the Relative Strength Index (RSI) indicates a decrease in momentum despite remaining above the neutral 50, suggesting bullish sentiment may be waning. The market structure is also on the brink of turning bearish, with a potential shift should prices fall below $2.17.
On-chain metrics such as the On-Balance Volume (OBV) highlight resistance at levels seen last month, reinforcing the possibility of a further decline.
Looking ahead, the next significant resistance is expected between $2.66 and $2.72, as indicated by the liquidation heatmap. This zone likely represents a critical barrier where XRP might face considerable selling pressure.
If XRP manages a daily close above $2.7 and successfully retests $2.5 as support, it could signal readiness for further upward movement. Conversely, failure to breach this resistance might see XRP descend below the $2 threshold, affirming a bearish trend for the near term.