XRP price struggled to find footing following its rejection from $0.64 resistance, reflecting sluggish price action witnessed with Bitcoin and altcoin majors such as Ethereum and Solana. However, bulls have an uphill battle ahead of them, including the need to defend $0.55 support and break above $0.6 resistance.
XRP Price Market Movers: Potential XRP ETF Approval, XRPL CryptoTradingFund, DeFi TVL Drop
- The longstanding lawsuit between Ripple and the Securities and Exchange Commission (SEC) concluded last week, with the company being fined $125 million. In the ruling, Judge Analisa Torres cleared XRP of the alleged security status, which immediately boosted the chances of a spot XRP ETF in the US. Highly optimistic crypto enthusiasts believe that the approval could come before the end of 2024, not to mention the possibility of a Ripple initial public offering (IPO).
- In recent news, Wells Fargo nodded to the use of XRP for loan payments and settling of credit card debts. The groundbreaking development proves that the traditional banking system is willing to embrace digital currencies. Customers will, in addition to paying off their debts with XRP, be eligible to earn cash-back rewards executed on the XRP Ledger System called CryptoTradingFund (CTF).
- Despite the above developments, which will extend to a new cross-border payments system aimed at replacing the conventional SWIFT system (Real Time Payments), the decentralized finance (DeFi) Total Value Locked (TVL) printed a massive drop from $13.2 million on August 8 to $252.1k a week later on August 16. This drastic drop coincided with the XRP price correcting from $0.64, suggesting that investors cashed out for profits.
XRP Price Analysis: Gearing Up For Breakout
XRP price traded in the lower range of the Bollinger bands, hinting at a potential breakout. The Bollinger Bands squeeze occurs when the bands narrow, indicating low volatility.
Traders would anticipate a breakout and wait for the Ripple price to move above or below the bands. To confirm the direction of the trend, other indicators are consulted including the RSI and the MACD. This allows traders to enter trades accordingly, setting stop-loss and take-profit levels as risk management techniques.
It is essential to wait for a second confirmation before taking up long positions. This will entail XRP price flipping the confluence resistance formed by the 20-day and 50-day. Other key levels to watch out for are the trend line resistance, the pivotal $0.6 hurdle, and the $0.64 area.
A rectangle pattern formed on the chart could invalidate the uptrend in favor of a downside breakout to $0.52. The down leg may stretch to $0.48 if more traders switch to short XRP.
The post Ripple XRP Price Poised For ATH If SEC Approves XRP ETF appeared first on CoinGape.
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