XRP Price Prediction: Ripple Dodges a Major Setback for Now

XRP Price Prediction: Ripple Dodges a Major Setback for Now

XRP experienced a sharp rally on Monday after former President Donald Trump announced plans to establish a strategic crypto reserve, which would include a selection of "Made in USA" coins. This led to Ripple soaring to $3, a 53% increase from its lowest point on Saturday.

Why XRP Price Avoided a Major Drop

The significant surge in XRP's price helped avert a potential disaster, particularly when the coin hit a low of $1.96 on Saturday. This level was critical as it aligned with the lower part of a head-and-shoulders pattern that was forming.

The "head" of this pattern was at $3.40, the highest point from January 16, while the "shoulders" were at $2.80. A head-and-shoulders pattern is typically a bearish signal.

Had XRP fallen below the neckline at $1.96, it would have confirmed the bearish trend, signaling a transition from the distribution phase (with dominant selling pressure) to the markdown phase in the Wyckoff Theory. This would have opened the door for a further decline, potentially reaching the 61.8% Fibonacci retracement at $1.5377 and even the 78.2% level at $1.0360.

However, XRP is not out of danger yet. For further upward momentum, the coin needs to break through the key resistance at $3.40—the highest level this year. A breakout above that level could signal more gains, with the next key target being $5.

Ripple’s Key Catalysts

The surge in XRP’s price can be attributed to Trump’s announcement that XRP will be part of the US government's strategic crypto reserves. However, some analysts have raised concerns, questioning whether XRP, which is largely controlled by Ripple Labs and is not fully decentralized, should be included in such reserves.

XRP also saw a boost as tokens within the XRP Ledger ecosystem gained traction. Sologenic (SOLO) jumped by 32% to $0.3885, while Coreaum (COREUM), XRP Army, PHNIX, and Salute (SLT) saw gains of over 50%. This indicates that the XRP Ledger network is performing well.

Additionally, the odds of the US Securities and Exchange Commission (SEC) approving a spot XRP ETF later this year are rising. If this happens, it could generate increased demand for XRP and other altcoins, especially from institutional investors.

XRP may also benefit from the SEC’s recent decision to halt lawsuits against companies like Uniswap, Coinbase, and Gemini, raising the likelihood that similar action could be taken against Ripple Labs.

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