XRP price rebounded on Wednesday after forming a double bottom, coinciding with its growing role in the real-world asset (RWA) tokenization industry. The Ripple token rose to $1.4300, just above this month’s low of $1.3430. Is this the beginning of a new bull run?
XRP Price Prediction: Technical Analysis
The daily timeframe chart shows that the Ripple price formed a double-bottom pattern at $1.3436 and a neckline at $1.6617, its highest level this month. A double-bottom is one of the most common bullish reversal signs in technical analysis.
The coin also formed a small doji candlestick, a common bullish reversal sign in technical analysis. This pattern consists of a small body and two shadows, a sign that a price opens and closes within the same period.
XRP has also formed a bullish divergence pattern. For example, the two lines of the Percentage Price Oscillator (PPO) have formed a bullish crossover. The two lines are now nearing the zero line.
At the same time, the Relative Strength Index (RSI) has moved from the oversold level of 15 to the current 44. It is nearing the neutral level of 50 and is pointing upwards.
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Therefore, the coin may continue rising in the coming days. Such a move would lead to the key resistance level at $1.6617, its highest swing this month. A move above that level will signal further gains, potentially to the next key resistance level at $1.7873, its lowest level in December last year.
On the other hand, a move below the key support level at $1.3436 will invalidate the bullish outlook. Such a move will point to more downside, potentially to the key support level at $1.1215, its lowest level this year.
Ripple is Gaining Market Share in Key Industries
XRP’s price may benefit from the ongoing growth of key industries such as stablecoins and real-world asset (RWA) tokenization. Data compiled by RWA shows that the total represented value in the RWA industry jumped by 4% over the last 30 days to over $1.49 billion. This growth is driven by top companies like Ctrl + Alt, Mercado Bitcoin, and Justoken.
The same trend is happening in the stablecoin industry, where the market capitalization jumped to $427 million. Its stablecoin holders have increased to over 35k, while the stablecoin transfer volume soared to over $933 million.
More data shows that the number of XRP active users and transactions has continued to rise over the past few months. Additionally, spot XRP ETFs added over $3 million on Wednesday, bringing their cumulative inflows to over $1.24 billion. These funds have accumulated over $54 million this year, even as the spot Bitcoin and Ethereum ETF outflows have jumped.
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