Current dynamics

The XRP/USD pair has continued its strong rally since the beginning of this month: last week, the instrument updated yearly highs near 1.6320, but then partially corrected and is currently trading around 1.5000.

The token’s growth, like the rest of the cryptocurrency market, is primarily due to the re-election of Republican Party representative Donald Trump as US president and the market’s hopes for a change in the authorities’ attitude towards digital assets. Investors expect that under the new White House administration, Ripple and the US Securities and Exchange Commission (SEC) will resolve their long-standing legal dispute, and XRP will finally be recognized as a commodity, not a security. The likelihood of such an outcome is supported by reports that Trump plans to transfer control of the cryptocurrency sector from the SEC to the jurisdiction of the US Commodity Futures Trading Commission (CFTC). Speaking on Fox Business, Ripple CEO Brad Garlinghouse expressed hope that digital innovation will be more aggressively pursued under the new president.

Further support for prices comes from Ripple’s announcement yesterday that it is launching an XRP-based tokenized monetary asset fund in partnership with Archax, a UK-based digital asset exchange supervised by the UK’s Financial Conduct Authority (FCA). The new partnership will significantly increase the potential for tokenized financing, which is currently valued at over $1.0 billion.

Overall, investor interest in the XRP token will continue to grow (open interest remains above $2.0 billion) and the fundamentals support further price appreciation in the medium term.

Support and resistance levels

The price is close to a strong resistance level of 1.5625 (Murray [8/8] level), consolidation above which will allow for continued growth towards the targets of 1.7578 (Murray [ 1/8] level) and 1.9531 (Murray [ 2/8] level). The key level for the bears is 1.1719 (Murray [6/8] level), supported by the middle line of the Bollinger Bands, a break of which will ensure a resumption of the decline towards the targets of 0.7812 (Murray [4/8] level) and 0.5859 (Murray [3/8] level).

Technical indicators indicate the preservation of the uptrend in the market: Bollinger Bands are directed upwards, MACD is stable in the positive zone, and Stochastic is directed downwards, which does not rule out a corrective decline, but its potential is perceived as limited.

Resistance levels: 1.5625, 1.7578, 1.9531.

Support levels: 1.1719 , 0.7812, 0.5859.

Trading scenarios

Long positions can be opened above 1.5625 with targets at 1.7578, 1.9531 and stop-loss at 1.4100. Execution time: 5-7 days.

Short positions can be opened below the 1.1719 level with targets at 0.7812, 0.5859 and stop-loss at 1.4690.