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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Dec 09, 2024 08:32 UTC
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XRP Price Crash: Will the Altcoin Drop to $1.57 in the Coming Weeks?
XRP price has surged over 400% in recent weeks due to factors like Trump's re-election, potential SEC lawsuit resolution, and institutional interest.
However, the altcoin is currently overbought and may face a short-term correction as the initial bullish sentiment fades.
Technical analysis suggests a potential support range between $1.81 and $1.57 in case of a correction.
Bitcoin’s recent jump above $100,000 has brought new energy to the cryptocurrency market, with altcoins like XRP from Ripple Labs benefiting. The total altcoin market cap is on a steady uptrend, and many major altcoins have seen impressive gains over the past five weeks. However, as the market continues to heat up, investors need to stay cautious.
The crypto market is buzzing with momentum as Bitcoin’s surge sets the stage for altcoin action. Among the many players, Ripple’s XRP has stood out, driven by a mix of market trends, regulatory updates, and investor sentiment.
Let’s have a closer look at this, shall we?
Understanding the Bull Market
Crypto investments are seeing a shift as cash rotates into different assets, driving bullish sentiment. But overbought conditions in leveraged and futures markets can be risky. To profit in this environment, investors need a clear understanding of bull market trends and strategic caution.
XRP Faces Resistance: What Comes Next?
XRP has surged over 400% in the last five weeks, but it now faces a key resistance level just below its all-time high. The weekly Relative Strength Index (RSI) is currently hovering above 84%, suggesting a short-term pullback could be on the way.
According to crypto expert Mathew Dixon, CEO of Evai Crypto Ratings, the market is likely cooling after the recent excitement surrounding Trump’s re-election.
Technical analyst Michaël van de Poppe believes that XRP could find solid support between $1.81 and $1.57 if further corrections occur in the near term.
How Trump Caused XRP to Jump
Donald Trump’s re-election as the 47th President of the United States has given XRP a boost. Trump recently appointed cryptocurrency advocate Paul Atkins as the chair of the Securities and Exchange Commission (SEC), which has strengthened market sentiment.
These developments have proven crucial amid the ongoing Ripple vs. SEC lawsuit, with many in the XRP community hopeful that the charges will be dropped as Ripple pays a $125 million civil fine.
Institutional Investors Fuel XRP’s Momentum
Institutional demand has played a major role in XRP’s impressive price rise. Leading firms such as WisdomTree, Bitwise, Canary Capital, and 21Shares have already applied to the SEC for spot XRP ETFs. This growing interest signals strong investor confidence in XRP’s long-term potential.
- Also Read :
- XRP Wakes Up As Weekend Approaches-Here’s Where the Price May Reach During the End of 2024
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Web3 and XRPL: New Developments Ahead
Ripple is making strategic moves with its upcoming fiat-backed stablecoin, RLUSD, which could accelerate XRP’s adoption in financial markets. Additionally, the XRPL network continues to make advancements in Web3 technologies. These developments are enhancing XRP’s appeal and strengthening its position for mainstream use.
We’ll keep you updated on all things XRP right here on Coinpedia!
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FAQs
Trump’s re-election boosted XRP, especially with his SEC appointment of crypto advocate Paul Atkins, strengthening market sentiment.
XRP’s price surged due to market momentum from Bitcoin, regulatory updates, and growing institutional demand, including spot ETF applications.
Yes 
No 
