XRP Price Forecast: XRP Holds Above $1.10 as ETF Demand Slows and XRPL Adoption Grows

XRP trades above $1.10 as ETF inflows ease despite growing XRPL adoption. See today’s XRP price forecast, key support and resistance levels, and what’s driving XRP.

XRP is trending around $1.10 on Wednesday, after recently bouncing back from trading lows of $1.04. This price is still below January’s price of $2.30. XRP tends to trend with the total cryptocurrency market.

XRP tends to react to the total cryptocurrency market. However, XRP is not showing the same momentum as BTC due to a lack of risk appetite and weaker sentiment toward altcoins. Despite the broader market conditions, XRP is strong from a fundamental standpoint and is driven by the growing regulation, adoption from institutions, and the use of the XRP Ledger.

Why is XRP Recovering?

XRP’s buy case is stronger than before due to the settlement of the Ripple vs. SEC lawsuit. The settlement lifted the regulatory blockage that kept exchanges and institutions from launching XRP-related services.

There have been significant improvements in the level of services provided for trading and investing in XRP in the U.S. with the launch of the first US spot XRP exchange-traded funds (ETFs). Although the inflows of these funds have been positive, there has been a decline of inflows suggesting a lack of interest in the current cryptocurrency market.

XRP has a growing number of projects and partnerships that are strategically focused on expanding its ecosystem, like the XRPL Lending Protocol, the University Digital Asset Xcelerator (UDAX) in Brazil, and the RLUSD stablecoin.

Although increased transactions on the network do not lead to a higher demand for XRP, more ecosystem activity focused on XRPL is promising.

Ecosystem Activity is a Positive Trend for XRP in the Long-run

XRP has a bright future with its dapps and projects and is beginning to innovate beyond its original use of cross border payment settlements.

The intersection of structured lending systems, tokenized assets, and compliant digital dollar-pegged stablecoins on XRPL are extending new use cases that clarify and support XRPL as a digital finance infrastructure as opposed to a payments network.

Supply dynamics continue to be a concern. Ripple has instituted the monthly escrow program. An allocated percentage of the unlocked XRP flows back to escrow while the rest is available for operational purposes.

This program, while helpful for transparency, has created a new potential supply for the market that investors will continue to monitor.

XRP Price Forecast: Breakout Retest Keeps Bulls Targeting $1.17

According to the four-hour XRP chart, XRP is trading at around $1.106 after breaking an ascending trendline and confirming a breakout. Short-term momentum appears to be improving, as the price has also reclaimed the 50 EMA ($1.096) and is trading above the 100 EMA ($1.101).

XRP’s price is testing a long-term descending resistance line, which has limited price action to the downside since mid-June. A decisive breakout would of this line would confirm a shift to a bullish price action and significantly increase the price of XRP.

XRP’s momentum appears to be increasing as the RSI is at 57 and is above the neutral line at 50 and is not in the overbought zone.

XRP’s first significant resistance is at $1.117, and lines at $1.165 and $1.214. A breakout above $1.117 would signal buying interest in order to reach those RSI targets. Profit taking would move the price closer to the immediate support line at $1.100, which has significant support at $1.045 and $1.010.

XRP Price Prediction: The breakout and improving momentum is bullish. Right now, the aim is $1.17, but as long as XRP stays above $1.10 and given the descending trendline is broken, the overall bullish reversal is expected.

The Bottom Line

• XRP has benefitted from improved regulation since the SEC case.

• Recent XRP Spot ETFs have expanded the retail and institutional client base. Inflows have decreased, however.

• The XRPL has growing stablecoins, lending, and tokenization which are key for long term adoption of the network.

• Resistance is at $1.117 and support is at $1.100 as XRP continues to move in a bullish direction.