XRP, the native cryptocurrency of the Ripple payment protocol, has a tokenomics model that enables fast and cost-effective cross-border payments for financial institutions. The token is designed to be used as a bridge currency in cross-border transactions, allowing for faster and cheaper conversion between different fiat currencies.
This application and usage of XRP help to increase the liquidity of cross-border payments, reducing the time and cost of international transactions. XRP can also facilitate remittances, corporate payments, and trade finance transactions, further expanding its potential use cases in the financial services industry.
The growth potential of XRP depends on financial institutions’ adoption and usage of the Ripple payment protocol. If the protocol continues to gain widespread adoption and usage, it could increase demand for XRP, which could drive up its price. However, the growth potential of XRP is also subject to several other factors, including regulatory developments, competition from other cryptocurrencies and payment protocols, and overall market sentiment towards cryptocurrencies.
XRP token made a decent uptrend, however, it is comparatively lower than other cryptocurrencies. A major breakout can be expected from XRP, but its inability to breach the 200 EMA curve despite consolidation for the last two weeks confirms a negative stance gradually developing. Thus, do not make any final investment decision without reading our XRP price prediction.
While there is a presence of strong selling intensity from the 200 EMA curve, the propelling price action trending near the 100 EMA curve is helping a consolidation for the token. As soon as XRP breaks out of the 200 EMA or tries to, sellers take negative positions hindering the uptrend expectations of the market.
As this volatile price action is happening below the immediate resistance of $0.5096, there could be a decent return probability in case of a positive breakout. On the contrary, pro-longed consolidation could trap buyers at the current levels, shifting buyers towards other tokens for profit-making. Such a scenario could cause a decline in XRP valuations in the coming days.
The MACD indicator has already delivered a bearish crossover pattern, while the RSI indicator has dropped from the peak level of 70 to near 54. As the price has traded above 100 EMA even with an RSI of 50, a sudden breakout can push the XRP token above its 200 EMA curve and test the price action-based resistance of $0.5096.
Transaction volumes for XRP over the weeks since its last strong decline in November 2023 have remained consistent, which could be taken as a positive cue by upcoming investors. In case of a downtrend, support should be expected from $0.3280 levels, which has previously hindered multiple selling sprees.