- Price of Ripple (XRP) skyrocketed more than 21% in the last 24 hours.
- The remittance token’s price is looking to rest on a key support level in the next 24 hours.
- The Fed’s upcoming interest rate announcement may negatively impact XRP’s price.
Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012 and was co-founded by Chris Larsen and Jed McCaleb.
Ripple’s main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.
The token used for the cryptocurrency is premined and utilizes the ticker symbol XRP. Ripple is the name of the company and the network, and XRP is the cryptocurrency token. The purpose of XRP is to serve as an intermediate mechanism of exchange between two currencies or networks – as a sort of temporary settlement layer.
One of the biggest crypto exchanges in the United States, Coinbase (NASDAQ:COIN), may soon relist Ripple (XRP) on their platform after delisting the remittance token at the start of the lawsuit between Ripple Labs and the Securities Exchange Commission (SEC).
In an interview on March 16, Coinbase’s chief legal officer (CLO), Paul Grewal, stated that Coinbase will likely relist XRP should Ripple Labs win the lawsuit.
Coinbase had delisted XRP in January 2021 shortly after the SEC filed a case with Ripple Labs. Thereafter, the XRP community pleaded with the exchange to relist XRP, but to no avail.
XRP Current Market Standing
XRP (XRP) is ranked as the sixth biggest crypto based on its market cap, according to CoinMarketCap. It experienced an amazing 21.37% increase in price in the last 24 hours, taking its price up to $0.4669 at press time. This also puts its total market cap at approximately $23.790 billion at press time.
The incredible 24-hour increase in XRP’s price has propelled the remittance token’s positive weekly performance. As a result, the price of XRP is up by 24.10% in the last 7 days at press time.
XRP Technical Overview
4-hour chart for XRP/USDT (Source: TradingView)
XRP’s price performed a dramatic turnaround prior to it reaching the demand zone between $0.3592 and $0.3655 yesterday. This reversal in trend saw the altcoin’s price recover back above the 9 and 20 EMA lines on the 4-hour chart.
In addition, the 9 EMA line bullishly crossed the 20 EMA line on XRP’s 4-hour chart – signaling that XRP’s price has entered into a short-term bullish cycle. After crossing above the 9 and 20 EMA lines, XRP’s price entered into a 4-candle sequence which saw its price rise from a low of $0.3830 to a high of $0.4790 yesterday evening.
Since then, the remittance token’s price has retraced to rest on the support level at $0.4567 at press time. XRP’s price may drop below this support level in the next 4-12 hours as there is some sell pressure that has entered the market, as can be seen by the wick present at the top of the current 4-hour candle.
A bearish ascending wedge chart pattern has formed on XRP’s 4-hour chart which supports the thesis that XRP’s price will fall today. A key confirmation of this bearish thesis will be if XRP’s price closes below the aforementioned support level that it is currently resting on in the next 12 hours.
Should this happen, XRP’s price will likely drop to the next support level at around $0.4281, where it will also receive support from the 9 EMA line on the 4-hour chart.
On the other hand, should XRP’s price be able to break above the resistance level at $0.4692 in the next 24 hours then this latest retracement will prove to be a liquidity move before another pump up.
Daily chart for XRP/USDT (Source: TradingView)
The magnitude of XRP’s price pump in the last 24 hours can be clearly seen on its daily chart. Similar to the 4-hour chart, XRP’s price soared comfortably across the 9 and 20 EMA lines on the daily chart. It also broke past the key price level at around $0.4459, which it last traded above on 8 November 2022.
A bullish flag has also been triggered in the last 24 hours with the 9-day EMA line crossing above the 20-day EMA line yesterday. This suggests that XRP’s price is currently in a bullish cycle.
Bears and bulls are currently in a tussle with each other. This is indicated by the body of today’s daily candle which is very thin at $0.4689. Should bears win today’s battle then XRP’s price will drop to the previously-mentioned price level at $0.4459. On the other hand, a victory for XRP bulls will elevate the crypto’s price to $0.4891 in the next 24 hours.
One key event that will take place tomorrow is the Fed’s interest rate announcement. Given the current turmoil in the global banking sector and the upcoming Fed’s interest rate announcement, it’s fair to say that XRP’s price may drop in the coming 48 hours.
Historically, the Fed’s interest rate hikes have impacted the crypto market in a negative way. Should the interest rate be hiked by anything more than 25 basis points then the price of XRP will drop.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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