- XRP price has been on the downtrend in the last two days and its current momentum and weak fundamentals signal near-term struggles.
XRP price has recorded the third successive daily loss on Thursday after failing to build traction above $2.30. The crypto coin has also been on a general downtrend for the last month, and currently trades below the 9,21 and 50 day Exponential Moving Average (EMA) levels. That has shifted the momentum to the downside, with critical support at the $2.20 mark.
Ripple CEO Brad Garlinghouse made a bold prediction on Wednesday, forecasting that XRP could take 14% of the SWIFT market in the next five years. SWIFT currently facilitates transaction worth up to $5 trillion daily. If XRP manages to hit Garlinghouse’s estimate, it could translate to approximately $700 billion daily transaction market. That is substantially higher than XRP’s current total market capitalisation of $132 billion, and would translate in a massive adoption of XRP, triggering a substantial upside climb by the coin in the medium and long term.
In the near-term, however, investor confidence in XRP price upside seems to be fading. This is signaled by the 7.7% drop in Open Interest to $4.12 billion in the last 24 hours. In addition, the RSI on the four-hour time frame is at 47, affirming control by the sellers. However, on a positive note, with XRP price down by 2.9% on the daily chart, the trading volume has followed a similar trajectory, declining by 10% in the last 24 hours. That shows reducing selling pressure, which could help the coin stay above the $2.20 support.
XRP Price Prediction
XRP price pivot mark is at $2.25 and resistance at that level calls for an extended downside below that level. The coin will likely find initial support $2.21. However, a stronger downward momentum will likely break below that level and potentially send the coin lower to test $2.17.
Conversely, going above $2.25 will favour the buyers to take control. That will likely see the first resistance encountered at $2.28. The downside narrative will be invalid if the price breaks below that level. Also, such momentum could clear the path to test $2.32 in extension.
