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XRP Price Prediction: XRP Shows Potential for Short-Term Rally to $1

AuthorSyed Ali Haider
Crypto News Author
Fact Checked by Joshua Downes
Last updated: September 18, 2024
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XRP Price Prediction: XRP Shows Potential for Short-Term Rally to $1

Highlights:

  • XRP is still trading in a broad range between $0.627 and $0.486
  • A confluence of positive news could send XRP through the $0.627 resistance
  • A rally through $0.627 resistance could send XRP to $1 in the short term

XRP is experiencing a minor market correction, reflecting broader trends across the cryptocurrency landscape. As of the time of writing, XRP was down by 1.91%, trading at $0.5757. The decline mirrors an hourly dip in the broader market, with several cryptocurrencies showing signs of temporary weakness.

However, the XRP price remains range-bound between its critical resistance level of $0.627 and a crucial support level of $0.486. This trading range could soon be tested, and depending on market conditions, XRP may be poised for a significant move.

Technical Analysis – XRP Range Bound But Odds Favor Bulls

From a technical analysis perspective, XRP’s current price action suggests two potential scenarios for its short-term future. On the bullish side, if buyers step in and push the XRP price above the $0.627 resistance level, a rally toward $1 could be in the cards.

XRP Price Chart
Source: TradingView

However, the bearish scenario also remains on the table. If XRP fails to maintain its current price level and experiences a deeper correction, the $0.486 support level could come into focus. Should this support fail, XRP could risk dropping below $0.40, significantly declining from its current position.

While such a drop could shake market confidence in the short term, many analysts believe broader market conditions could support a more bullish outcome.

Federal Reserve Decision Could Trigger Market Rally

One of the critical factors that could drive the XRP price higher is the outcome of the U.S. Federal Reserve’s interest rate decision, which is expected to be announced today. If the Fed cuts interest rates by 0.25 basis points, it could lead to a rally across various financial markets, including cryptocurrencies. Lower interest rates generally lead to increased liquidity in the market, making higher-risk assets like cryptocurrencies more attractive to investors.

If Bitcoin responds positively to a rate cut and rallies past the $60,000 mark, it could lift altcoins like XRP. Bitcoin’s dominance in the market often sets the tone for other cryptocurrencies, and a significant move by Bitcoin could create a favorable environment for the XRP price to break through its resistance level and push toward $1.

Regulatory Shifts Boost Optimism for XRP

In addition to the potential impact of U.S. monetary policy, regulatory developments in the crypto space are also playing a crucial role in XRP’s outlook. Ripple, the company behind XRP, has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) for several years. The SEC’s lawsuit against Ripple for allegedly conducting an unregistered securities offering has impacted XRP’s overall market performance.

However, there are signs that the regulatory environment is becoming more favorable for cryptocurrencies, including XRP. In a tweet by prominent crypto analyst Jack the Rippler, he quoted Ripple’s lawyer Stuart Alderoty, who expressed optimism about the future of the company and XRP in the U.S. market.

Alderoty emphasized that once the “regulatory cloud is lifted,” Ripple would be positioned as the most trusted source for enterprise crypto solutions in the U.S. This statement reflects the growing sentiment that a resolution to the regulatory uncertainty could open the floodgates for XRP adoption, particularly among institutional players.

Potential Breakout – XRP Price Eyeing $1 Mark

In the short term, favorable regulatory developments and a potential interest rate cut create a higher likelihood of XRP breaking through its $0.627 resistance level and rallying toward $1. While market volatility remains a constant in the crypto space, combining technical indicators and external factors suggests that XRP is well-positioned for a possible upward move.

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