The Cryptocurrency issued by the company Ripple Labs, XRP, has been one of the highlights of the last month.
Since Donald Trump became the winner of the presidential elections in the United States, XRP It rose to $2.90. Prices like this have not been seen for XRP since the end of 2017.
XRP then entered a corrective period which it is currently in.
The following graph, provided by TradingViewallows you to observe the behavior of XRP since August 1, with 4-hour candles (red or green vertical bars).
XRP price since August 1, 2024. Source: TradingView.
Many may be wondering, is this the end of the XRP rally? Is the bullish cycle over for the Ripple cryptocurrency?
If that were the case, it wouldn’t be bad. After all XRP had a not inconsiderable 280% rise in the last 365 days.
But, there are reasons to think that XRP still has a bullish path.
From the point of view of ‘chartism’ and Bitcoin/” target=”_blank” rel=”noreferrer noopener”>technical analysis signs of the formation of a structure known as a bullish pennant are detected. This pattern is generally characterized by a strong initial move (the flagpole), followed by a period of consolidation with converging highs and lows (the flag), which tends to resolve in the direction of the previous trend.
If such an assessment were correct, then XRP is just having a natural and organic pause within a bullish macrotrend which is not yet finished.
Thus, the Ripple cryptocurrency could perhaps see new all-time highs in this bullish cycle (perhaps this year or in 2025).
Scheme of a bullish pennant. Source: centralcharts.com
Jacobo Maximiliano, trader and financial analyst who works for the Bitget exchange, sent comments to CriptoNoticias about the price behavior of XRP.
This specialist comments that “XRP has always been the rogue prince of cryptocurrencies, the most reviled, the most criticized of cryptocurrencies, but, despite everything, it is approaching historical highs.”
Maximiliano adds that XRP “has activated a bullish pattern that can take it very high.” Also, the Bitget analyst dares to make some projections about how far XRP could rise in this bullish cycle:
«From a technical point of view, XRP has activated a bullish pattern very similar to that of ether (ETH) and bitcoin (BTC). This would take it in different time ranges, first to $3.30 and then to $4.50. Then there would be a strong correction below $2. And later, it should surely rise to 7 zone dollars. “We will have to be very attentive to the possible execution of this bullish pattern, as we see in the graph.”
Jacobo Maximiliano, financial analyst.
Maximiliano accompanies his explanation with a graph in which his projection of price for XRP:
Projection for the price of XRP, by Jabobo Maximiliano. Source: Bitget.
RLUSD, Ripple’s new cryptocurrency is coming
The big catalyst for the price of XRP could be the imminent RLUSD launchRipple’s stablecoin.
Stablecoins are cryptocurrencies designed to minimize volatility by keeping their value tied to a fiat currency (or other financial asset), such as the US dollar, and have grown exponentially in recent years.
The launch of RLUSD is significant because it will not only be issued on Ethereum, one of the most used platforms for stablecoins, but also on the XRP Ledger (XRPL).
The latter has several important implications, including increasing the utility of XRP. The reason is that Every RLUSD transaction on this network will require the use of XRP to pay commissions.. Additional demand for XRP will then be generated, as users would need to purchase XRP to carry out these transactions. This mechanism can act as a natural boost for the price of XRP, as it increases its utility and therefore its demand.
Furthermore, being available on both networks, Ethereum and XRPL, RLUSD could facilitate interoperability between different ecosystems where XRP acts as a liquidity bridge.
These factors suggest that the launch of RLUSD may not only be a “pivot” event for the adoption of Ripple technology, but also a significant catalyst for the price of XRP. If the stablecoin manages to capture a significant share of the market, demand for XRP could increase considerably.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
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