XRP price eyes a 10% climb as Ripple lawyer John Deaton raises concern over US Dollar losing its dominance
- Ripple price has regained its bullish momentum, with the RSI hinting at a pullback after a two-day nosedive.
- XRP could climb 10% to test the supply zone extending from $0.6582 to $0.7186, confirming the uptrend above $0.6857.
- Invalidation of the bullish thesis will occur after the payment token’s market value breaks and closes below the 50-day SMA at $0.5852.
Ripple (XRP) lawyer John E. Deaton has raised concern over the US Dollar (USD) losing its dominance. His comments come after the UAE officially stopped using dollar for oil trades, in favor of local currencies.
Also Read: XRP price to pull north as Ripple beckons financial institutions to adopt XRPL XRP token
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Ripple lawyer concerned about waning USD dominance
It comes as the world over edges towards de-dollarization, with BRICS at the forefront of the campaign. Notably, the UAE enlisted into this economic alliance only recently.
It marks a strategic departure from the dollar dominance that has been long established, with the potential to significantly affect the dominance of the US dollar within the global oil market. Deaton speculates that this could be a trend, posing rhetoric that crypto and/or stable coins could play a role moving forward.
Will this be a trend? Is the USD losing its dominance? Will crypto and/or stable coins play a role moving forward? https://t.co/l6bK0xJQV0
— John E Deaton (@JohnEDeaton1) November 28, 2023
Ripple price inches higher eyes a 10% climb as momentum resumes
Ripple (XRP) price is sitting on the $0.5981 support level, with the 50-day Simple Moving Average (SMA) providing additional support at $0.5852. With these buyer congestion levels holding, XRP price could move north.
Increased buying pressure sprouting from the 50-day SMA and the $0.5981 buyer congestion level could set the tone for Ripple price to foray into the supply zone extending from $0.6582 to $0.7186. To confirm the continuation of the advance, the price must record a daily candlestick close above the midline of this order block above $0.6857.
In a highly bullish case, Ripple price could break out of the supply barrier as it heads to the $0.8000 psychological level.
The gains could even extend past $0.9000 and the range high at $0.9408 before testing the much desirable $1.0000 psychological level, last tested on December 23, 2021. Such a move would constitute a 65% climb above current levels.
The Relative Strength Index (RSI) has deflected from its initial southbound move in a noticeable attempt to pull north. If this trajectory sustains itself, the RSI could soon cross above the signal line (yellow band), a move typically interpreted as a buy signal.
XRP/USDT 1-day chart
On the flipside, increased seller momentum could see Ripple price lose the critical support levels offered by the horizontal line at $0.5981 and the 50-day SMA at $0.5852, thereby invalidating the bullish thesis.
A prolonged slump could send Ripple price to the 200-day and 100-day EMAs at $0.5531 and $0.5480, respectively. If those levels break, XRP price could fall back into a consolidation phase between $0.4743 and $0.5392.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
