Ripple Price Update

Ripple price remains in a bear market after falling over 35% from its highest point in January.

Ripple (XRP) rose for the second consecutive day as cryptocurrencies rebounded following encouraging inflation data. Most cryptocurrencies saw growth, with Bitcoin (BTC) and Cardano (ADA) both rising over 3%.

XRP’s increase can be attributed to Franklin Templeton’s application for a spot exchange-traded fund (ETF) on Tuesday. The company, which manages more than $1.5 trillion in assets, joins other firms like WisdomTree, Bitwise, 21Shares, Grayscale, Canary, and CoinShares, all of which have also applied for a spot XRP ETF. Users on Polymarket have pushed their odds for ETF approval to nearly 80%.

XRP is highlighted by Donald Trump as part of the U.S. digital assets strategy. If the ETF is approved, demand could surge as the U.S. uses its robust balance sheet to acquire these digital coins.

Strengths of XRP

One of XRP’s significant advantages is its potential to disrupt the SWIFT-dominated payment industry. Ripple claims that its technology allows transactions to be completed in a few seconds and at a lower cost than SWIFT’s.

The resolution of the lawsuit with the Securities and Exchange Commission (SEC) could serve as a catalyst for growth, allowing Ripple Labs to onboard more banking partners. Notable existing partners include Santander, HSBC, SBI Holdings, and Bank of America. The SEC has already dropped lawsuits against platforms like Uniswap, Coinbase, and Kraken.

Technical Analysis: Will XRP Hit $1 or $3.5 First?

The daily chart indicates that XRP dropped to a critical support level of $1.9275 this week, a significant threshold it has maintained since December of last year.

This level represents the neckline of a head and shoulders pattern that has developed since December, with the head at $3.4 and the shoulders at $3. It has fallen below the 100-day Weighted Moving Average, suggesting a bearish breakdown risk, particularly if it falls below the neckline at $1.9275. If this happens, it may target the psychological level of $1, aligning with the 78.6% retracement level.

Conversely, a bullish breakout to $3 will be confirmed if XRP surpasses the right shoulder at $3 and the year-to-date high at $3.4, potentially leading to more upward movement.