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Highlights
- XRP price shows signs of bottoming out at $0.4.
- A falling wedge pattern eyes a 38% breakout.
- A win for Ripple in the lawsuit with the SEC could pave the way to a spot ETF.
The XRP price prediction reveals signs of a recovery thawing for the leading cross-border token following weeks of intense losses due to volatility emanating from the German government BTC selling spree. After a 12% surge in the last 24 hours, XRP sits above $0.5. Meanwhile, Bitcoin and Ethereum are struggling to find direction unable to shake the bearish pressure.
XRP Fundamental and Macro Outlook
The leading cross-border money remittance token retested the primary support at $0.4 following a fall from June’s peak of $0.55. Many factors contribute to the unexpected sell-off including the German government’s BTC selling spree and concerns over headwinds from Mt. Gox exchange starting the distribution of BTC and BCH to its creditors.
Retail investors facing capitulation joined the selling party, further accentuating the decline.
However, XRP price seems poised for a major comeback, thanks to the US CPI data affirming easing inflation. Players in risky markets like stocks and crypto are more optimistic about the Federal Reserve fast-tracking the first interest rate cut.
As a volatile digital asset, XRP stands to gain from the improving sentiment. Lowering interest rates would mean an influx of money into Bitcoin and altcoins.
XRP traded at $0.472 on Friday, recording a 5% increase in 24 hours. A 6% growth in the market mirrors the new bullish comeback while a 70% surge in the trading volume to $1.5 billion implies that interest in XRP is rising.
XRP Price Prediction: Falling Wedge Pattern Hints 38% Move
The last time XRP tested support at $0.4 was more than a year ago in May. A strong rebound followed to $0.93 bolstered by Ripple’s partial win against the Securities and Exchange Commission (SEC) in the ongoing lawsuit.
Retesting the same support area and bouncing back could imply another major trend reversal, sending XRP price to highs above $1.
Based on the daily chart technical structure, a falling wedge pattern established since March could blast XRP 38% to $0.7. The 20-day Exponential Moving Average (EMA) holds as the immediate support, further reinforcing the bullish thesis.
The Relative Strength Index (RSI) position above 50 after a recovery from the oversold region could boost interest in XRP longs and trigger a shift in the futures market open interest, which according to Coinglass is stuck in the red.
Traders would be looking out for a daily close above the wedge pattern’s resistance to validate the breakout. A continued uptrend above the 50-day EMA at $0.48 will serve as a second confirmation for the rally eyeing $0.7 in the short term.
With a bull market still expected in 2024 or early 2025 XRP may grow to reach $5. Several factors will determine if this milestone is achievable in this bull cycle including the Ripple vs SEC lawsuit, FOMO, and the possibility of a spot XRP ETF.
Frequently Asked Questions (FAQs)
1. What is XRP?
2. Has XRP price bottomed?
3. Will a spot XRP ETF be a game changer?
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