XRP has been under immense selling pressure after sharp rejection at the important $0.65 level. This rejection resulted in a price drop, which may indicate the beginning of a bearish market. The price is below the ascending wedge pattern, a technical sign of a bearish trend.
Tough Resistance Zone
Over the past few months, $0.65 has been a formidable resistance level for the XRP digital currency. Cryptocurrency comes under immense pressure every time it tries to break through it. The price of XRP is now at a decisive zone of $0.50 – $0.55. Some short-term bounce-back may be seen within this range, but the overall outlook still favors a downward directional trend.Â
If XRP tries to reverse and challenge the broken wedge, it would meet more sellers. This could push the price towards the $0.50 support level even lower. Many investors are paying attention to this threshold as the next turning point. As of press time, XRP is trading at $0.5338, showing a 1.33% rise over the past day.
Bearish Moving Averages
The XRP price is still below the two key moving averages, the 50-day and 200-day Exponential Moving Averages (EMAs). This is a bearish formation, indicating that further price deterioration is expected. However, despite a decisive attempt to break through it, there is still strong resistance at $0.5739.
However, some analysts still have a positive outlook on XRP’s future. Analyst Ben Armstrong believes the token could be a star performer in this cycle, and his view is grounded on two significant shifts.
Egrag Predicts XRP Surge: Worst-Case Target $2.30 to $5.89
ETF and IPO Boost
First, Bitwise has applied for an XRP Exchange-Traded Product (ETF) with the US Securities and Exchange Commission. If approved, introducing this ETF could make institutional investors pour money into XRP, thereby driving the price of XRP. This is because if this ETF is approved, XRP will be boosted significantly.
Bitwise XRP ETF in the works —this could be the game changer we’ve been waiting for. If you’re not paying attention to XRP now, you will be soon.
— BitBoy (@BenArmstrongsX) October 3, 2024
Second, Ripple’s decision to go for an IPO could only be favorable for XRP, as it is its native currency. The increased awareness of Ripple in the public market will lead to more attention and investment in the cryptocurrency XRP.
Armstrong remains confident even though the SEC’s recent appeal might slow down approval of the XRP ETF. Ripple’s IPO and this ETF could drive XRP to new levels by the time they are live. The current bearish trend notwithstanding, investors are still hopeful.
