As a seasoned researcher with a knack for deciphering market trends and a deep-rooted passion for blockchain technology, I find myself intrigued by the current state of XRP. The recent price action has been a rollercoaster, mirroring the broader crypto market’s struggle to maintain momentum.
The value of XRP failed to establish a firm position after it was turned away at the $0.64 barrier, mirroring the slow price movements seen in Bitcoin, Ethereum, and other significant altcoins like Solana. Yet, the bulls face a tough climb, as they must defend the $0.55 support level and push beyond the $0.6 resistance point to make progress.
XRP Price Market Movers: Potential XRP ETF Approval, XRPL CryptoTradingFund, DeFi TVL Drop
- The longstanding lawsuit between Ripple and the Securities and Exchange Commission (SEC) concluded last week, with the company being fined $125 million. In the ruling, Judge Analisa Torres cleared XRP of the alleged security status, which immediately boosted the chances of a spot XRP ETF in the US. Highly optimistic crypto enthusiasts believe that the approval could come before the end of 2024, not to mention the possibility of a Ripple initial public offering (IPO).
In recent news, Wells Fargo nodded to the use of XRP for loan payments and settling of credit card debts. The groundbreaking development proves that the traditional banking system is willing to embrace digital currencies. Customers will, in addition to paying off their debts with XRP, be eligible to earn cash-back rewards executed on the XRP Ledger System called CryptoTradingFund (CTF).
Despite the above developments, which will extend to a new cross-border payments system aimed at replacing the conventional SWIFT system (Real Time Payments), the decentralized finance (DeFi) Total Value Locked (TVL) printed a massive drop from $13.2 million on August 8 to $252.1k a week later on August 16. This drastic drop coincided with the XRP price correcting from $0.64, suggesting that investors cashed out for profits.
XRP Price Analysis: Gearing Up For Breakout
The value of XRP remained towards the lower end of its Bollinger Bands, suggesting a possible breakout might be on the horizon. This happens when Bollinger Bands constrict, which is an indication of reduced market volatility.
Traders might predict a price breakout, then choose to act when the Ripple value surpasses or drops beneath specific levels (the bands). To verify the direction of the market movement, they also check additional tools like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). This way, they can initiate trades accordingly, setting safety measures such as stop-loss and take-profit levels to manage risk.
To ensure confidence in our long positions, it’s crucial to wait for a second confirmation. This involves XRP‘s price surpassing the combined resistance created by the 20-day and 50-day moving averages. Other significant points to keep an eye on include the trend line resistance, the substantial $0.6 barrier, and the $0.64 region.
A rectangle pattern formed on the chart could invalidate the uptrend in favor of a downside breakout to $0.52. The down leg may stretch to $0.48 if more traders switch to short XRP.
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2024-08-16 22:05