XRP price to pull north as Ripple beckons financial institutions to adopt XRPL XRP token.
- Ripple price has found support at $0.5981, breaking a 20% fall that began on November 7.
- It comes on the back of a collaboration with HSBC, combining Metaco with Ripple for banking infrastructure.
- XRP price could pull north if bulls defend this position, with a 15% climb to $0.6820 in the cards.
- The bullish thesis will be invalidated upon a decisive candlestick close below the critical support at $0.5981.
Ripple (XRP) price could pull north after a steep multi-week fall. The optimism comes after HSBC, one of the largest banks in the world, chose Ripple as its custody technology. To some, the partnership is a clear manifestation of financial institutions looking to adopt XRPL and most importantly XRP token.
Also Read: XRP Price Forecast: This setup could propel Ripple to $1
Metaco’s HSBC deal with Ripple foreshadows possible growth for XRP
Ripple acquired Swiss digital asset custody firm, Metaco, earlier in the year. However, recent revelations that the firm is working with one of the world’s largest banks, HSBC, have excited bullish sentiment for XRP community members.
According to XRP community members, HSBC choosing Ripple as its custody technology partner is a clear manifestation of financial institutions looking to adopt XRPL and most importantly XRP token.
According to Metaco CEO Adrien Treccani, “There is an indirect link between Ripple protocols and Metaco’s banking clients. Treccani explains this correlation as the adoption of Ripple and Metaco's solutions further promoting the adoption of the XRPL as a protocol,” adding that, “Every success of Ripple the company is also a success for the XRP Ledger.”
Ripple has been active in courting banks with the goal of streamlining cross-border payments. Treccani points to XRPL as one of the longest-serving examples of a private tokenization blockchain.
As such, the amalgamation of Metaco and Ripple provides a complete suite, made up of an infrastructure layer and a services layer, delivering a financial powerhouse with a well-packaged vertical stack comprising tokenization life cycle, payments primitives, and liquidity management all from one vendor.
XRP price finds support as Ripple Metaco partnership suggests growth
Ripple (XRP) price has found support at $0.5981 in the daily timeframe after a 20% fall beginning November 7. The bulls are pushing to establish a presence in the XRP market, indicated by the green histogram bars of the Awesome Oscillator (AO) in positive territory. Experts have also identified an inverted Head-and-Shoulders pattern on the XRP price chart against the USDT stablecoin in the three-day timeframe, forecasting a 60% upswing to $1.234.
Increased buying pressure above current levels could see Ripple price extend to test the supply zone ranging from $0.6582 to $0.7186. To confirm the continuation of the trend north, the price must break and close above the midline of this order block at $0.6820.
In a highly bullish case, Ripple price could stretch further, foraying above the $0.8000 psychological level to collect the sell-side liquidity (SSL) that continues to reside above. Such a move would render the supply barrier into a bullish breaker, serving as the jumping-off point for more gains.
XRP/USDT 1-day chart
On the flipside, if selling pressure overpowers buying pressure, Ripple price could lose the $0.5981 support, paving the way for a spiral down into the consolidation phase between $0.4735 and $0.5392. A break and close below the $0.5981 support level would invalidate the bullish thesis.
The Relative Strength Index (RSI) position below 50 supports the bearish thesis, showing weak price strength as bears continue to show resilience. Its deviation to the south shows that momentum is falling.
Notice that the RSI attempted to cross above the signal line (yellow band), but the move proved premature, with the two bands deflecting in favor of the bears.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
