XRP price has pulled back in the past few days, moving from last week’s high of $3.1830 to the important support at $3.0. It remains down by over 17.95% from its highest point this year. This article explores why the Ripple price may be on the cusp of a strong rebound.
XRP Price Technical Analysis
The daily timeframe chart shows that the XRP price has plunged from a high of $3.6597 in July to the important support at $3.0. Most recently, it rebounded from a low of $2.70 on 1st September to a high of $3.1830.
Ripple price moved slightly above the descending trendline that connects the highest swings since July. The ongoing pullback is likely part of the break-and-retest pattern, a common bullish continuation sign.
XRP price has formed a bullish pennant pattern, which is made up of a vertical line and a symmetrical triangle. This pattern points to a continuation in the near term.
The triangle section is also part of the handle section of the cup-and-handle pattern. C&H is another highly bullish pattern in technical analysis.
The ongoing XRP price pullback happened after it hit the major S/R pivot point of the Murrey Math Lines tool. Therefore, the most likely scenario is where the coin rebounds and hits the initial resistance at $3.3958, the highest swing in January.
READ MORE: Somnia Surged After Mainnet Launch: Will Keeta Price Do the Same?
A move above that level will point to further gains, potentially to the year-to-date high of $3.6597. Finally, the coin will jump to the extreme overshoot point at $4.2970, which is up by 45% above the current level.
The bullish XRP price forecast will become invalid if it plunges below the strong, pivot, reverse level at $2.7345.
XRP price chart | Source: TradingView
Top Catalysts for the Ripple Price
The XRP price has several bullish catalysts that may propel it higher in the long term.
First, the coin, like other risky assets, will benefit from the upcoming Federal Reserve interest rate cut. Most economists expect the bank to cut rates by 0.25% on Wednesday, much lower than what Donald Trump has demanded.
Interest rate cuts normally boost risky assets as investors move from safe-haven assets like bonds. The anticipation of these rate cuts explains why most coins have rebounded in the past few months and why bond yields have pulled back.
Second, the final deadline for several spot XRP ETFs is coming up in October this year. And most analysts expect that the SEC, under Paul Atkins, will approve these funds. XRP price will likely rally ahead of the approval, and possibly retreat after it happens.
Third, the XRP price could benefit indirectly from the ongoing stablecoin growth. RLUSD stablecoin has accumulated over $730 million in assets, a figure that is continuing to grow and may hit $1 billion soon.
READ MORE: Worldcoin Price Prediction: WLD to Rebound But Risks Remain
