XRP Price Prediction as Ripple Forms a Rare Death Cross

The XRP price remained on edge on Wednesday even as Bitcoin retested its all-time high in the overnight session. Ripple, the seventh-biggest cryptocurrency by market cap, was trading at $0.5255, a few points higher than this week's low of $0.4900.

XRP price remained largely unchanged on Wednesday even as Bitcoin retested its all-time high. Ripple, the seventh-biggest cryptocurrency, was trading at $0.5255, a few points higher than this week’s low of $0.4900.

XRP dropped in 2024

XRP’s price action is interesting because it has continued to underperform other major coins like Ethereum and Bitcoin. It has dropped by 16% this year, while Bitcoin retested the all-time high of $73,800.

Its underperformance continued this month after Chris Larsen, a co-founder, announced that he was donating to Kamala Harris.

Harris is considered to be a more anti-crypto candidate than Donald Trump. For example, she is said to be considering appointing Gary Gensler as the next Treasury Secretary. Moreover, Harris will have the ears of popular crypto critics like Senator Elizabeth Warren who want more regulation.

As a result, many crypto traders who prefer Trump sold their XRP tokens in protest, explaining why the token continued to underperform.

?JUST IN: Ripple CEO Brad Garlinghouse declares, "Gary Gensler's reign of terror is ending very soon!" $XRP? GAME OVER, SEC ? pic.twitter.com/crFVdcPqAL

Fundamentally, Ripple is facing several other issues. First, the company has had difficulty signing up more banks to use its RippleNet and On-Demand Liquidity (ODL) features to transfer funds internationally.

Instead, some large banks, such as JPMorgan and ANZ, have embraced tokenization features, and analysts believe that stablecoins will play a significant role in the future. In fact, sanctioned countries like Russia and Iran have found it easier to move funds using stablecoins.

Second, Ripple’s XRP Ledger network has failed to attract any developers, with data indicating that it has a total value locked (TVL) of only $14 million. Instead, developers have opted for other chains like Base Blockchain, Arbitrum, Polygon, Avalanche, and Sui.

Third, it is doubtful that Ripple's upcoming stablecoin will gain any market share in the industry. Tether has a market cap of over $120 billion, while USD Coin, Dai, Athena USDe, and First Digital have over $34 billion, $4.9 billion, $2.69 billion, and $2.25 billion, respectively. It will be difficult for RLUSD to gain market share.

XRP price analysis

Ripple chart by TradingView

The weekly chart shows that the XRP token has been trading in a tight range over the past few months. It has formed a symmetrical triangle pattern, which is depicted by the yellow lines. This pattern is now approaching a confluence level, indicating substantial upcoming moves.

Both Ripple and the Relative Strength Index (RSI) have formed symmetrical triangle patterns, which are converging at the confluence level. The MACD indicator has moved slightly below the zero line.

As a result, Ripple price will continue to trade within a tight range over the next few weeks. A bullish breakout will be confirmed if the price manages to move above the key resistance point at $0.6640, which was its highest level in September. Such a move will signal further gains to $0.9250, which is approximately 75% higher than the current level.

More reading: Bitcoin Deja vu? Bernstein Predicts BTC to Surge by 200%

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