The XRP market is showing strong signs of a potential breakout above the $0.58 level, which was the highest point reached this year. Technical analysis indicates that the XRP price is well positioned to rally beyond that threshold based on the Elliott Wave Principle and the recent golden cross formed by the intersection of the 50 and 200 daily moving averages.
Furthermore, the XRP price could be in the early rising channel on the daily timeframe, which suggests a rebound on the lower support channel and a push toward new highs.
Bullish Indicators for XRP Price
The XRP market has experienced two successive upswings on higher time frames, which is a positive sign for bullish sentiment. The Elliott Wave Principle, a technical analysis tool that identifies patterns and cycles in financial markets, suggests that XRP could be ready for a major move up.
The golden cross, which occurs when the short-term moving average crosses above the long-term moving average, is a widely followed signal that indicates a shift in market momentum toward buyers. In this case, the 50-day moving average has crossed above the 200-day moving average, which is considered a bullish sign for XRP.
Rising Channel and Strong Community Support
From another technical standpoint, the XRP market could be in the early rising channel on the daily timeframe that began earlier this year. This indicates that XRP has been trading within a narrow range and could be preparing for a breakout.
Additionally, the XRP market takes pride in a vibrant global community of developers and investors who have built several use cases for the XRPL. Ripple, the company behind XRP, has made the ledger open for developers to create custom side chains that are interoperable with other blockchains. The Cryptum protocol also enables DeFi developers to integrate any application on the XRP ledger seamlessly.
Also Read: Ripple Vs SEC Lawsuit May Extend Till 2026 – Says Pro-XRP Lawyer
XRPL Supports Central Bank Digital Currency Development
The XRPL also supports a private version to provide central banks with a secure infrastructure for developing and managing Central Bank Digital Currency (CBDC). Earlier last month, Brooks Entwistle, Senior Vice President of Customer Success and Managing Director of APAC and MENA at Ripple, announced that the company is in discussions with over 20 different central banks in regard to CBDC developments. This highlights the potential for XRP to play a role in the future of digital finance and international payments.
Regulatory Scrutiny and Impact on XRP Price
As a United States-based crypto company, Ripple and the XRP market are subject to ongoing regulatory scrutiny, which has had a significant impact on the XRP price. The SEC has accused Ripple of conducting an unregistered security offering through the sale of XRP, and the case is still ongoing.
Moreover, the regulatory uncertainty has made it difficult for crypto companies to register for business licenses in the country, which could hinder the growth of the XRP market.
Related: XRP Price Set to Explode: Historic Trends Point to Massive Surge in April – Coinpedia Fintech News
