Popular altcoin XRP (XRP) experienced a 1.5% drop in the last 24 hours and is trading around $0.47 at the time of writing. This drop in the altcoin follows Bitcoin’s (BTC) downward movement, which is approaching a critical support level. While Bitcoin falling below this support could negatively impact the altcoin market, XRP presents a strong image.
XRP Could Rise by 55%
When examining XRP’s price movement, a large falling wedge formation approaching a breakout point emerges. The altcoin has repeatedly found support from this formation’s trend support line over the past 396 days. On a shorter 4-hour timeframe, XRP is trading at the bottom of a 20-day range. This positioning indicates a potential recovery to retest the $0.50 level.
Technical analysis shows that due to the limited area within the falling wedge formation, a bullish breakout for XRP is near. If the expected breakout occurs, XRP could rise to approximately $0.72, marking a significant 55% price increase. In a negative scenario, XRP is currently below the 50-day and 200-day simple moving averages (SMA) on the daily chart, indicating that the decline could deepen.
Additionally, XRP’s 14-day Relative Strength Index (RSI) is just above the oversold threshold at 35. If the RSI falls into the oversold region, selling pressure is expected to increase before a potential recovery, as this region typically indicates that the price has bottomed out. Critical support for XRP is at $0.45, with additional support levels at $0.35 and $0.32 in the event of a significant drop.
Spot XRP ETF Speculations
In addition, various factors could affect XRP’s price trajectory, including the expectation that a spot XRP ETF could be approved in the US and a favorable outcome for Ripple in its ongoing case with the US Securities and Exchange Commission (SEC). These events could significantly impact market sentiment and the price, pushing it upward.
Ripple CEO Brad Garlinghouse recently criticized SEC Chairman Gary Gensler for comments made during a Bloomberg Invest event. Gensler suggested that many cryptocurrency executives face legal issues, leading Garlinghouse to claim that such statements could negatively affect the current administration’s political stance.
The XRP community is also abuzz with speculation about the potential approval of a spot XRP ETF. Gensler’s recent interviews with Bloomberg and the Financial Times, where he hinted at the possible approval of a spot Ethereum ETF, have raised hopes for a similar outcome for XRP in the near future.
Increasing speculations about a spot XRP ETF, along with other positive developments, position XRP for potential upward movement. Particularly, an ETF approval could significantly boost the altcoin’s market performance and investor confidence, making it critical.
