XRP Price Prediction: Eyeing $3.1 After Four-Day Winning Streak

XRP (XRP) went up for four days in a row before today’s decline after bouncing off a key support, and could now be eyeing the $3.1 resistance.

The market took a breather in the past couple of weeks after the Federal Reserve cut interest rates by 25 basis points.

This is the first time that the central bank has lowered its benchmark rate this year. Even though this is often bullish for risky assets like cryptos, market participants had already priced in the cut and went on to sell the news.

Meanwhile, a second cut is expected for October. These are dovish measures that favor a bullish long-term outlook, which could make XRP at these levels a particularly attractive grab.

Despite the latest retreat, the native asset of the Ripple network is the second top-performing crypto in the top 5 on a year-to-date (YTD) basis with a 36% increase.

Non-ETH Altcoin ETFs Have Attracted $400M Combined

The launch of the first spot exchange-traded fund (ETF) linked to XRP could also favor a bullish XRP price prediction, as it has received $70 million in inflows just a few days after its launch.

REX-Osprey XRP ETF (XRPR) AUM – Source: REX-Osprey Website

This is the third altcoin-linked product listed by REX-Osprey. Combined with the other two, linked to Dogecoin (DOGE) and Solana (SOL), they have brought in more than $400 million in assets, reflecting the market’s interest in altcoins beyond Ethereum (ETH).

The U.S. Securities and Exchange Commission (SEC) has now expedited the road for other spot listings linked to cryptocurrencies to get listed in the country’s public markets, as they can now make a decision solely based on their S-1 prospectuses.

This should reduce the regulatory delays that asset management firms experienced in the past few years to get these investment funds out there. As a result, both retail and institutional adoption could skyrocket in the next few years.

On the other hand, Ripple’s ecosystem has been growing steadily. The blockchain project recently signed an agreement with Securitize to serve as the liquidity provider via its Ripple USD (RLUSD) stablecoin.

This means that all redemptions processed for BlackRock’s $2 billion BUIDL fund will be processed via RLUSD payments.

This stable asset has seen its market cap increase from $50 million to nearly $800 million at the time of writing, and its focus on serving enterprise clients could soon push it to the top 10 in the stablecoin market.

All of this translates into higher trading activity within the XRP Ledger, which means higher demand for XRP as the network’s utility token used to pay for gas fees.

XRP Bounced Strongly Off $2.7

The daily chart shows that XRP bounced strongly off the $2.7 support last week as we predicted. This resulted in a four-day winning streak that confirmed the existence of enough demand at that level to propel the price to a higher high.

XRP/USD Daily Chart (Coinbase) – Source: TradingView

It is highly likely that the token will retest the $3.1 support. However, the Relative Strength Index (RSI) has not yet sent a buy signal. For that to happen, the oscillator needs to move above the 14-day moving average and the mid-line.

Since the macroeconomic backdrop is still favorable for cryptos, this latest retreat could be considered a buying opportunity at a point when most metrics have confirmed the beginning of altcoin season.