- The price of Ripple (XRP) has risen 0.48% over the last 24 hours.
- At press time, technical indicators on XRP’s chart foreshadow a price drop in the next 24-48 hours.
- Key economic data will also be released this week which may result in market-wide price drops.
Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012 and was co-founded by Chris Larsen and Jed McCaleb.
Ripple’s main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.
The token used for the cryptocurrency is premined and utilizes the ticker symbol XRP. Ripple is the name of the company and the network, and XRP is the cryptocurrency token. The purpose of XRP is to serve as an intermediate mechanism of exchange between two currencies or networks – as a sort of temporary settlement layer.
One of the biggest stories in the XRP community this week is that the largest U.S. based crypto exchange platform, Coinbase (NASDAQ:COIN), may relist the remittance token on its platform. In an interview on March 16, Coinbase’s chief legal officer (CLO), Paul Grewal, stated that Coinbase will likely relist XRP should Ripple Labs win its lawsuit with the SEC.
The crypto exchange delisted XRP in January 2021 soon after the SEC filed its case with Ripple Labs. Despite vocal appeals by the Ripple (XRP) community to have the token relisted, Coinbase remained unmoved.
XRP Current Market Standing
XRP (XRP) is ranked as the sixth biggest crypto based on its market cap, according to CoinMarketCap. It experienced a 0.48% increase in price in the last 24 hours, taking its price up to $0.3828 at press time. This also puts its total market cap at approximately $19.495 billion at press time. The 24-hour increase in XRP’s price has added to the remittance token’s positive weekly performance. As a result, the price of XRP is up by 3.74% in the last 7 days at press time
XRP Technical Overview
Traders and investors need to take note of the bearish chart pattern that has formed on XRP’s 4-hour chart. At press time, an ascending chart pattern has formed on XRP’s 4-hour chart after its price printed higher lows and higher highs since last Thursday.
The altcoin’s price has already dropped below the lower level of the bearish chart pattern in today’s trading session, but bulls were able to push XRP’s price back into the chart pattern.
XRP’s price is, however, hanging by a thread at press time as it has lost the support of the 9 EMA line on the 4-hour chart and is on the verge of losing the support of the 20 EMA line on the 4-hour chart as well.
One level that traders should watch in the next 24 hours is the key support at $0.3797. Should XRP’s price close below this level in the next 8-12 hours then it will descend to the next support level at $0.3689 before dropping back into the demand zone between $0.3586 and $0.3652.
On the other hand, if XRP’s price is able to regain the support of the 9 and 20 EMA lines on the 4-hour chart, and then break above the key resistance level at $0.3943, then the remittance token’s price will rally to $0.4140 in the coming week.
Daily chart for XRP/USDT (Source: TradingView)
There is a bearish flag that is about to be triggered on XRP’s daily chart as the 9-day EMA line is looking to cross below the 20-day EMA line. Should this happen, it will be a confirmation that XRP’s price will drop to the next daily support level at $0.3703 in the next 24-48 hours.
Further confirmation will be if XRP’s price closes below the 9-day and 20-day EMA lines today. Despite the next support level being at around $0.3703, the bearish chart pattern on XRP’s daily chart suggests that the altcoin’s price will experience a strong drop that may comfortably drop below the aforementioned support level to enter into the demand zone.
The daily RSI indicator supports the bearish thesis as the daily RSI line is sloped negatively towards oversold territory at press time.
Key economic data will be released from the U.S. Fed this week with the Fed’s interest rate decision being announced on 23 March. It is forecasted that the Fed will hike interest rates by 25 basis points. Should the hike be greater than or equal to the forecast then the crypto market will experience price drops market-wide.
Technical indicators on XRP’s 4-hour and daily charts, as well as the upcoming interest rate announcement, may result in the remittance token’s price dropping in the next 24-48 hours.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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