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XRP Price Prediction – Break Above $1.40 Could Open Door to $1.45 Short-Term

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Highlights:

  • XRP price is pushing the $1.40 resistance intraday
  • A close above the $1.40 resistance could send XRP to $1.45 short term
  • Rebound across the cryptocurrency market supporting XRP price action 

XRP (XRP) is in the green today, reflecting price action across financial markets. When writing, XRP was trading at $1.37, up by 0.75% in the day. While this upside is negligible, it reflects resilience amid geopolitical turbulence. While the price is showing some strength, XRP trading volumes have dropped intraday. They are down by 13.49% to stand at $2.83 billion. 

This drop in volumes likely indicates that the average XRP investor is choosing to hold despite the geopolitical environment. At the same time, it shows that short sellers may not be keen on shorting XRP, even though buyer momentum is not yet strong. Going forward, the odds are strong that XRP could be pushing higher.

XRP Increasingly Integrated with the Global Financial System

One factor that could boost XRP is its growing integration into the global financial system. A recent report shows that Ripple now has financial operations in more than 60 countries. Additionally, Ripple’s Ripple Prime is looking to transition a significant post-trade volume to the XRP Ledger by the end of the year. This is a big deal and could see billions of dollars in XRP transacted in the future. Such a surge in adoption translates to strong demand and could send XRP price to new highs in the short to medium term.

Clarity Act Could Send XRP Price to New Highs

Due to Ripple’s strong integration with the global financial markets, it could benefit immensely from improved regulations in the US and elsewhere. One of the biggest regulations that the market is looking forward to is the Clarity Act. While there is no headway yet on the stablecoin yield issue, analysts are optimistic it will be resolved by April this year.

If the Clarity Act passes, XRP could benefit immensely due to its positioning in the financial world. Ripple’s founder, Brad Garlinghouse, is one of the big proponents of the Clarity Act, an indicator of how important its passage is to Ripple, and by extension, XRP. 

Broader Market Momentum Sending XRP Price Higher

XRP, like every other cryptocurrency, is also benefiting from the market’s reaction to the ongoing crisis in the Middle East. When the war between Iran, Israel, and the United States started, the expectation was that cryptocurrencies would crash. That’s because the cryptocurrency market is a volatile risk-on market. However, the opposite happened. The market rallied hours after the initial attack and appears to have stabilised since.

This sent a message to investors that cryptocurrencies were trading at the bottom and that there was little room for more downside. The impact is that investors are increasingly buying into cryptocurrencies, with greater confidence that the bear market is over.

XRP, being one of the leading cryptocurrencies and one with true mass adoption, is one of those experiencing a surge in demand. If the price of XRP continues to show resilience as the war drags on, FOMO could kick in. Such could see XRP rally to new highs in the short to medium term. 

Technical Analysis – XRP Pushing Towards Resistance

XRP is currently trading at the $1.40 resistance. If bulls are strong enough to push XRP price through the $1.40, a rally to $1.45 could follow. On the other hand, if bulls fail at the $1.40 resistance, two scenarios could play out. The first is a consolidation around the $1.40 resistance. The second is a possible correction if bears gain control.

XRP Price Chart
XRP Price Chart: TradingView 

If bears take control, a correction to the $1.34 support could follow. Of these scenarios, a rally to $1.45, or even higher, is more likely. That’s because the broader market is gaining bullish momentum intraday. As such, XRP price is likely to keep pushing higher since it trades in the overall direction of Bitcoin.

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