Ripple price forecast: XRP eyes $2.70 despite poor price action
XRP is trading above $2.4 after defending the $2.35 support level amidst positive market trends. Analysts predict a potential rally towards the $2.7 resistance level, driven by factors such as a possible SEC ETF approval by November 13 and Ripple's strategic investments. Despite a slight dip in momentum, XRP's bullish outlook remains supported by key indicators, although a breach below $2.35 could lead to a further decline toward the $1.96 support level.
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Introduction: XRP's Current Market Position
XRP is currently trading above $2.4 after successfully defending the $2.35 support level. The cryptocurrency demonstrates potential for a rally towards the $2.7 resistance level in the near future.
Market Overview and XRP's Recovery
The cryptocurrency market started the week positively, with major cryptocurrencies like Bitcoin seeing significant gains. Bitcoin briefly hit the $107k resistance level but faced rejection and dropped below $103k. This bearish trend also impacted altcoins such as XRP.
Despite this, XRP dipped below $2.40 on Tuesday but managed to reclaim the level as bulls defended the $2.35 support level. This recovery could provide momentum for XRP’s price to rise further in the coming days.
Influence of External Factors and ETF Approval Expectations
Analysts predict XRP's price could surge higher ahead of a potential ETF approval by the United States Securities and Exchange Commission (SEC). According to Alexis Sirkia, Chairman of Ripple-backed Yellow Network:
"Investors are looking to get in ahead of and benefit from the retail and institutional capital that floods in with ETF approvals, which looks to be set for around November 13. Ripple’s recent $500 million strategic investment and $40 billion valuation are other positive factors impacting XRP’s price."
The strategic investments by institutions such as Citadel and Fortress demonstrate their belief in the utility of Ripple's XRP Ledger (XRPL), potentially driving structural growth in XRP's price.
Price Analysis: Potential Rally Towards $2.7
XRP rallied to $2.55 on Monday, retesting the 50-day EMA after a bearish performance last week. However, the resistance failed, and XRP later dipped below $2.40, with its current price hovering around $2.44 per coin.
If the $2.35 daily support holds, XRP may retest the $2.55 resistance level and potentially hit $2.70, capturing trendline liquidity. On the contrary, a close below the $2.35 support level could trigger a bearish trend, pushing XRP towards the next support at $1.96.
Technical Indicators and Market Sentiment
Technical metrics reveal mixed signals for XRP. The daily RSI dipped slightly below neutral, landing at 47, indicating a mild weakness in momentum. On the other hand, the MACD showed a bullish crossover earlier this week, suggesting that the broader bullish sentiment remains intact despite short-term market fluctuations.