XRP price retreated and settled at a crucial support level, suggesting a near-term rebound. Ripple was trading at $2.0547 on Tuesday, down by 15% from its highest point this year. It may surge as key catalysts emerge.
XRP Price Technical Analysis Suggests a Rebound
The daily chart points to an eventual XRP price rebound. First, this chart shows that the recent sell-off is losing momentum as the pace of the decline is falling.
The token has also found substantial support at the 50-day Exponential Moving Average (EMA). As this chart shows, this moving average has been quite important to the token in the past few months.
More technical indicators suggest the token has formed bullish chart patterns. It formed a triple-bottom pattern at $1.7700. This pattern signifies that bears are hesitant to place orders below that level.
The coin also formed a giant falling wedge pattern. Its recent rebound occurred after the two lines neared their confluence. Most importantly, the Supertrend has turned green, a sign that bulls remain in control.
Therefore, the most likely Ripple price forecast is bullish, with the initial target being at $2.4170. This target is about 18% above the current level. A move above that price will point to more gains, potentially to the important resistance at $3.3
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Still, the main technical risk that the XRP price has is that it has formed a dragonfly doji candlestick on the weekly chart. This pattern consists of a long upper shadow and a small lower body. It often leads to a strong bearish breakout.
Potential Catalysts For Ripple Price
There are a few potential catalysts for the XRP price. First, Changpeng Zhao has predicted that a crypto super cycle is coming, a move that would benefit XRP given its strong fundamentals.
Second, data compiled by Dune shows that more people are using XRP in DeFi through Flare’s FXRP. Over $150 million of it is locked in decentralized finance by over 6,200 users. Additionally, the number of DeFi transactions has jumped to over $1.4 million, a trend that will likely continue growing.
Additionally, XRP has been the most successful ETF launch recently, with inflows jumping to over $1.2 billion. These funds now hold nearly $1.5 billion in assets, a figure that will likely accelerate in the coming years.
The other top catalysts for the XRP price are the growing role of Ripple USD (RLUSD) in the payments industry, the recently approved Ripple banking charter, and the declining supply on exchanges.
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