Current Market Scenario
The price of XRP has dropped by 1.5% in the last 24 hours, currently trading at $0.47. This decline follows a similar trend in Bitcoin, which is nearing a critical support level. A breach of this support by Bitcoin could have negative implications for XRP and the broader cryptocurrency market.
Falling Wedge Pattern Indicates Potential Breakout
XRP's price action has formed a large falling wedge pattern over the past 148 days, suggesting a potential breakout. The lower side of this wedge has a robust support level, tested multiple times over the past 396 days. In the 4-hour timeframe, XRP is trading at the bottom of a 20-day range and may rebound from its current support to retest $0.50.
The chart suggests a bullish breakout is imminent, with the price running out of space to move within the wedge. A successful breakout could result in a 55% increase, pushing XRP to $0.72. However, XRP is currently trending below the 50-day and 200-day simple moving averages (SMA) on the daily chart.
Additionally, the 14-day relative strength index (RSI) for XRP is at 35, just above the oversold zone. If the RSI falls into this zone, increased selling pressure could occur before a bounce, typically indicating a price bottom.
Key Support Levels
The strongest support level for XRP is currently at $0.45. If XRP falls below this level, it could trigger further declines to lower support levels around $0.35 and $0.32.
Factors Influencing XRP Price
Several factors could influence XRP's price in the near future, including the potential approval of an XRP ETF and the outcome of Ripple's lawsuit against the U.S. Securities and Exchange Commission (SEC).
Ripple CEO Criticizes SEC Chair Amid ETF Speculations
Ripple CEO Brad Garlinghouse recently criticized SEC Chair Gary Gensler for his comments about the crypto industry. Gensler stated that many crypto executives end up in jail, which Garlinghouse argued could negatively impact President Biden's chances in the upcoming election.
Garlinghouse's remarks have fueled speculation within the XRP community about the possible approval of an XRP ETF. Gensler's comments in interviews with Bloomberg Invest and the Financial Times have hinted at the potential approval and trading of an ETH ETF soon, further driving these speculations.
Conclusion
XRP appears poised for a potential upward movement, driven by growing speculation about a possible XRP ETF and other factors. An ETF approval could significantly boost XRP’s market performance, potentially leading to a rally towards $0.7. Investors will be closely watching the market dynamics and regulatory developments to gauge the future trajectory of XRP.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
