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If this movement continues its trend, XRP would shoot higher.
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The rise of Bitcoin favors the rise of cryptocurrencies.
XRP continues to consolidate a bullish pennant, a figure that reflects optimism among its investors.
In trading, a pennant is an indicator of technical analysis that It is characterized by a period of consolidation in the market. It is formed when the prices of a digital asset stabilize after an upward movement.
The pattern is characterized by a strong initial movement, known as the flag, followed by a compression phase, in which the price highs and lows progressively narrow until forming the pennant. This compression usually precedes an explosive movement, in the same direction as the previous trend, that is, upward.
As CriptoNoticias has reported, the price of the Cryptocurrency issued by Ripple Labs has had great growth after the Donald Trump’s victory in the United States elections and It reached a high of $2.90, price levels not seen since early 2018.
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From that moment, the quote of XRP registered a bearish correction and now it remains close to the $2.40 area. As seen in the following graph of TradingViewit is during that period that the pennant in the XRP quote was formed.
A bullish pennant formed in the XRP price. Fountain: TradingView.
In addition to this technical pattern, There are factors that suggest that XRP could enter a new bullish cycle. In principle, because the rise in bitcoin (BTC) favors the rest of the cryptocurrencies.
Historically, the good performance of coin created by Satoshi Nakamoto It fuels investor interest in risk assets, which drives demand for other cryptocurrencies, such as XRP.
The other issue that must be noted is that Ripple Labs is about to launch its stablecoin Ethereum/” target=”_blank” rel=”noreferrer noopener”>RLUSD to the market.
The financial product that has 1:1 parity with the dollar was approved by the New York Department of Financial Services (NYDFS) and will soon be available on BTC and cryptocurrency exchanges.
However, the most important thing to highlight is that RLUSD operates both in the Ethereum network as in XRP Ledger, whose native currency is XRP.
If the stablecoin is successful, Transaction volume on XRP Ledger will increase, driving demand for XRP. This could put upward pressure on the price of the Ripple digital asset.
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