Key Insights:
- XRP price bullish momentum builds as Federal Reserve testing.
- Technical indicators show XRP trading in a in rangebound.
- XRP’s breakout could target $15 to $40 in the coming cycles.
XRP continues to draw attention across the crypto landscape, with recent developments pointing to both short-term volatility and long-term structural shifts. As of press time, XRP is trading at $2.22, reflecting a 1.23% gain in the past 24 hours, according to CoinMarketCap.
With over $2.3 billion in 24-hour trading volume, investor engagement remains high. These reports highlight possible supply shifts, future price targets, and critical support and resistance levels.
Federal Reserve Testing and Supply Reduction Emerge as Key Catalysts
Amid heightened interest, market analyst Ripple Queen reported that the Federal Reserve is currently testing XRP for instant cross-border settlement infrastructure. The analyst’s early findings suggest that this process may involve burning up to 20% of XRP’s total supply.
This strategic token reduction could align XRP’s structure with institutional-grade payment systems. The scale of the proposed burn, though not officially confirmed by the Federal Reserve, points to a broader initiative involving supply realignment and enhanced transaction efficiency.
According to the Ripple Queen, this move may also streamline XRP’s utility in high-volume transfers. While confirmations remain pending, the implication of a potential 20% burn introduces notable implications for liquidity dynamics.
Investors continue to monitor updates closely as they await further developments around the ongoing test program. Market responses so far have reflected cautious optimism, with XRP holding above its near-term support levels despite continued consolidation.
Support and Resistance Levels Define Current Technical Landscape
As institutional factors seem to be in focus, a technical analysis by Koroush AK finds a narrow price structure being formed at the levels of support at around $2.06 and resistance set at $2.57. XRP has been in this zone in a number of sessions, and it is getting hard to see an imminent breakout.
Several attempts have been seen to break the upper resistance band but the market is still bound to its range and form lower highs in what Koroush describes as a Bouncy-Ball Pattern or BBP. The structure can be interpreted as a signal of an upcoming directional shift perhaps in case of some lapses in their support positions.
According to the analyst, a critical short-term level is at $2.0643. In case of such failure, the second main target is seen at the price of $1.56, with a chance of experiencing a 19.8% drop in prices. This zone also serves as a historical support area, where past accumulation occurred.
Meanwhile, resistance remains firm between $2.57 and $2.70, preventing any sustainable upside continuation. Until XRP can clear that resistance band, market participants may expect the asset to remain within its current trading range.
XRP Price Long-Term Formation Highlights Broader Bullish Structure
Indeed, unlike shorter-term indicators, EGRAG CRYPTO has detected an inter-year technical signal that may have a larger implication. According to the analyst, XRP has completed a 7-year W-shaped pattern, referred to as the W10 formation.
This trend started taking shape in early 2018 and was now said to be in its breakout mode. According to the chart model of EGRAG, such a structure implies future price objectives as high as $15, $22, and even $40.
The first inflexion point in this framework is at 3.40, and the second structure support is 1.90. All these levels will be critical hurdles because XRP passes a period of breakout. The analyst emphasized three significant terrains, with the most optimistic target having been set to $40.
Nevertheless, he stressed on gradual improvements based on tested resistance levels before increased projections shall be possible. Meanwhile, funding rates in XRP futures contracts offer additional insights.
Funding Rates Signal Confidence as XRP Price Hovers Below $2.40
According to CoinGlass data, XRP funding rates were mainly favorable in June. Longs remained the dominant side, which indicated a bullish feeling despite spot prices having resistance at the 2.40 level.
Despite the rate dipping to a negative value on June 23, it significantly recovered in a short period, as was the case with the XRP spot price. Such stability in the funding rate implies a long-term interest in XRP derivatives, which reinforces the active market activity.
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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