Why is the XRP price up today?

XRP price prediction
Why is the XRP price up today?

NEW DELHI (CoinChapter.com) — Ripple’s (XRP) price ended its weekend losing streak on Jan. 8 with a nearly 7% spike to a daily high of $0.58. Technical indicators combined with other bullish cues are why XRP price is up in the new week.

However, bearish pressure against the token remains, which could force XRP price to shed gains.

Technicals Favoring XRP Price

A key reason why XRP price is up on Jan. 8 might be technical indicators signaling a buy signal for the Ripple token in the monthly timeframe, which could attract hodlers. Furthermore, XRP price action has formed a bullish technical pattern called the ‘Falling Wedge.’

Why XRP price is up today?
XRP price formed a bullish technical pattern with a 39% price target. Source: Tradingview.com

A narrowing price range and converging trend lines characterize the pattern, which typically indicates a potential reversal of the current downtrend.

Two downward-sloping trend lines that converge as the price lowers, drawn by connecting the price action’s lower highs and lower lows, create the pattern. The trading volume usually decreases as the pattern develops, but a breakout must happen with high volumes.

The height of the back of the wedge determines the price target of the pattern. As such, XRP price could rally nearly 39% to reach the pattern’s theoretical price target near $0.773

More Bullish Cues For The Ripple Token

In addition, investors remain optimistic about XRP’s price action in 2024, buoyed by expectations of Ripple adoption growing in the months to come.

Furthermore, rumors of CEO and Vietnamese billionaire Pham Nhat Vuong of Vinfast Automaker stating that the firm would accept XRP payments are doing the rounds on social media. If true, it would become a significant bullish cue for the token.

Ripple adoption could be why XRP price is up today
Black Swan Capitalist tweeted about Ripple’s adoption

Meanwhile, Versan Aljarrah, founder of Black Swan Capitalist, noted that Ripple could see increased adoption as it resolves the challenges faced by the traditional financial sector.

In Dec. 2023, the court granted summary judgment to the US Securities and Exchange Commission on claims that Terraform Labs offered and sold unregistered crypto asset securities. In a Jan. 4 filing, the SEC argued that the Terraform Labs ruling supported its opposition to Coinbase’s Motion For Judgement.

The filing comes before a Jan. 17 court date where the SEC and Coinbase would argue on Coinbase’s Motion To Dismiss (MTD). If Judge Katherine Failla grants Coinbase an MTD, the SEC’s case to appeal against programmatic sales of XRP would suffer a major setback.

Traders could enter the market if the court decides in Coinbase’s favor, anticipating a positive impact on XRP prices.

Bearish Pressure Remains Against XRP

However, XRP price continues facing bearish pressure, evident from the long upper wicks on recent daily candles. An unfavorable outcome in the SEC and Coinbase legal battle could harm the Ripple token.

Additionally, the token’s 20-day EMA (red wave) is poised to needle below its 100-day EMA (blue wave), forming a bearish technical pattern called the ‘Death Cross.

Traders often consider the occurrence a symbol of negative market sentiment.

Why XRP price is up today
XRPUSD daily price chart with RSI. Source: Tradingview.com

A continued downtrend might see XRP price break below the immediate support near $0.525, forcing bulls to defend the support near $0.49. Short traders could enter the market once XRP confirms a breakdown below $0.525.

Conversely, an uptrend would require XRP price to break above the immediate resistance near $0.583. Breaking and consolidating above the immediate resistance would help the token challenge the 50-day EMA (purple wave) resistance near $0.61.

The RSI for XRP remained neutral, with a score of 33.96 on the daily charts.

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