XRP Price Prediction as Central Bank of Montenegro Plans CBDC Development with Ripple – XRP to $1 Soon?
XRP, the world’s sixth-largest cryptocurrency with a $26 billion market capitalization, lost 3.3% in 24 hours and is seeking stronger support at $0.50.
It was recently rejected at the $0.5853 level in March and is currently trading just above $0.50.
Here’s where XRP is heading now.
XRP Price Eyes $1 – Analyzing The Odds
The largest cross-border money transfer token is at a crossroads where two outcomes are possible.
Holding support at $0.50 intact will most likely favor the bulls, allowing them to plan another massive attack on the supply zones $0.55, $0.65, and $0.85.
XRP price performed exceptionally well in March as investors booked positions ahead of the imminent summary judgment of the lawsuit between Ripple, the issuing company, and the US Securities and Exchange Commission (SEC).
Ripple won a significant number of motions during the court process, which could explain the soaring optimism among investors ahead of the summary judgment, expected on or before May 6.
A win for Ripple is a win for XRP and possibly the larger crypto industry, which has been facing increased regulatory pressure, especially from the US.
That said, XRP price is expected to rally following the summary judgment.
If the SEC wins the case, legal experts say Ripple may appeal the ruling, paving the way for a long court battle.
Meanwhile, a tug-of-war is intensifying on the daily chart with support at $0.50, as mentioned, likely to uphold XRP’s uptrend to $1.
XRP’s recent pause at $0.5 may be a sign of the cryptocurrency recollecting liquidity before continuing its move towards $1, which is further confirmed by the formation of a golden cross when the 100-day Exponential Moving Average (EMA) crossed above the longer-term 200-day EMA.
XRP is also comfortably trading above all applied moving averages, including the 50-day EMA.
However, a potential downside risk is present if XRP’s price drops below the demand area at $0.50, as indicated by the Moving Average Convergence Divergence (MACD) with a prominent sell signal.
As the momentum indicator approaches the mean line at 0.00, the chances of a significant price correction increase.
The next significant support level for XRP is at $0.45, which also coincides with the 50-day EMA.
Central Bank of Montenegro Collaborates with Ripple on a Digital Currency
The Central Bank of Montenegro (CBCG) has signed an agreement with Ripple, a blockchain startup, to create a strategy for the development and piloting of the country’s first digital currency.
Montenegro believes having a central bank digital currency (CBDC) is a big step toward digitizing the economy for its citizens, not to mention supporting the future of financial inclusivity and accessibility.
“The Central Bank of Montenegro is bringing the next level of digital transformation to its financial infrastructure and addressing some of the world’s biggest financial challenges, including financial inclusion,” CBCG said in a statement.
A CBDC is a type of digital currency that is issued and backed by a country’s central bank. It offers a way to modernize and digitize the payment system, potentially increasing efficiency and reducing costs associated with cash printing and handling.
The project at hand will involve various phases, starting with determining the real-life utility of the CBDC or sovereign stablecoin, followed by devising a structure to simulate its circulation and use in monitored conditions.
