Key Insights:
- XRP price traded below $2.25 with RSI squeeze suggesting a major breakout is near.
- Ripple minted 10M RLUSD as stablecoin laws gain traction in U.S. Senate.
- Over 78% of XRP holders are now in profit, signaling growing investor trust.
XRP price is showing early signs of upward movement, with analysts watching for a breakout above $2.25. Technical indicators suggest the token is approaching a decision point, while Ripple’s RLUSD minting and favorable stablecoin regulation may increase long-term demand.
XRP Price Charts Show Squeeze Near Key Resistance
XRP price has entered a high-compression phase, hovering just below the $2.25 resistance level. According to analysts, this region may become a breakout point when buying pressure re-emerges.
According to Dark Defender, XRP price is aligning with a cup pattern, Fibonacci level, and a squeezed trendline. He identified two short-term targets: $2.22 and $3.61. Meanwhile, the support area is at $2.0706 in a narrowing range.
Exponential Moving Averages are also converging. This tends to cause a massive shift of volatility compression. If XRP price closes above the $2.25 mark, it could trigger fast momentum toward the projected targets.
Furthermore, CasiTrades also agreed that the consolidation is approaching the peak. He has warn that not going past resistance may lead to such a sweep of lower supports at around $2.01, $1.90 or a low $1.55. But he adds that as long as the sentiment changes in the middle of the week, as was the case in previous cycles, the setup will be bullish.
The daily RSI also points to tension. The index is moving up in a wedge confirming the thesis on breakout.
RLUSD Minting Aligns with Regulatory Tailwinds
Ripple has minted 10 million RLUSD, its new stablecoin, during a period of legislative progress. The RLUSD Treasury recorded the transaction on-chain, indicating increased preparation for future use cases.
The development is in-line with the energy of the GENIUS Act in the U.S. Senate. The bill suggests transparent regulations to stablecoins such as reserve of full reserves and monthly audits. Ripple appears to be positioning RLUSD for growth under this framework.
Analyst Andrew said this law has the potential of transforming the banking industry in the course of 6 – 24 months. The technology may increase the presence of firms such as Ripple in digital currency.
John E. Deaton suggested the law would fuel demand for regulated stablecoins, including RLUSD and USDC. He quoted Brad Garlinghouse stating that the market caps of stablecoins can increase five to ten times by 2030.
As Circle’s USDC approaches a $40 billion market cap, RLUSD may benefit from similar institutional adoption. The approach of Ripple towards minting indicates that the firm seeks to establish a market share as soon as possible.
On-Chain Metrics Support XRP Network Strength
Additionally, recent on-chain data from Glassnode showed 78.8% of XRP holders are currently in profit. This tilt shows the growing confidence in the market and this could further spur accumulation. Historically, a growth in profitable wallets translates to increased network activity. Investors in profit mode have a tendency to either reinvest or engage more in ecosystem services.
XRP also recorded a rise in active addresses in recent weeks. The measure takes into consideration retail and institutional interest, and is frequently a forecast of price movements. Increased address activity also suggests a growing user base for XRP Ledger platforms. These platforms may integrate RLUSD into more products, creating new payment and DeFi services.
Ripple’s decision to mint more RLUSD is likely driven by this demand. It gives hope of improved utility and wider usage in international digital settlements.
Consolidation Phase Could End
The XRP market structure showed a recurring pattern where consolidation precedes sharp price action. Such a move may be due to current technical compression. According to CasiTrades, the most critical level to monitor is the $2.25 resistance. If XRP price breaches this threshold with volume, the next targets could be cleared rapidly.
The RSI and the pattern congruence holds up a rapid breakout eventuality, in case the momentum catches on. However, risk remains as investors keep an eye on possible liquidity pulls to the lower zones. Failure to maintain $2.01 would scratch out the bullish thesis in the short-term.
If the breakout holds, XRP price could enter Wave 3 of an Elliott pattern, often the most powerful phase. This would allow the next target to be higher than $2.50, which can rise up to $3.61.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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