- Summary:
- XRP price has been consolidating in recent days below USD 2.60 and the a double-top pattern confirms bearishness. Is there a way back up?
XRP price opened downward on Wednesday, extending its stay below the $2.40 support. The coin was down by 1.5% and traded at $2.33 at press time, and has formed a double-top pattern on the daily chart. The formation of the bearish pattern underlines XRP’s recent weak traction, which has seen it slide by -6.7% in the last week.
Despite its recent troubles, the sentiment around XRP’s fundamentals is bullish-leaning. US President-elect Donald Trump’s nomination of Paul Atkins to replace Gary Gensler as the head of the Securities and Exchange Commission (SEC) truck the right cord with crypto enthusiasts.
Atkins’ pro-crypto stance could see the market regulator reverse its high-handed approach to the crypto industry, with potential withdrawal of the case against XRP issuer, Ripple Labs. However, the near-term momentum for XRP price is hinged on the approval of Ripple’s stablecoin, RLUSD.
Ripple Labs CEO Brad Garlinghouse confirmed on Tuesday that the New York Department of Financial Services (NYDFS) approved the listing of RLUSD. However, he did not reveal the exact date of the listing.
The stablecoin is seen as a potential disruptor to the financial system, working in synergy with XRP. RLUSD is pegged 1:1 to the US dollar, and some analysts opine that it could help reduce volatility in the XRP price, enhancing its efficiency in settling transactions in the mainstream financial market.
XRP Open Interest (OI) shot up significantly in the last 24 hours, in line with the RLUSD approval. According to Coinanalyze, the value of OI futures contracts rose by 14.76% while that of perpetual contracts was up by 7.58% in that time frame. That signals a resurgence of investor confidence in XRP price upside.
XRP price prediction
The XRP price pivot is at $2.37, and the sellers will be in control if resistance persists at that level. Otherwise, the momentum will shift towards the upside.
Support: Immediate support will likely be at $2.32. However, if the sellers extend their control, the price could break below that level and test $2.26.
Resistance: XRPUSD will likely face the first resistance at $2.41. However, a stronger momentum could break above that level and invalidate the downside narrative. Also, the gains could extend to test the second resistance at $2.45.
