XRP Price Prediction: XRP Bounces Off $3 With Strong Volumes – $4 In Sight?

XRP (XRP) has gone down for four days in a row after it encountered some strong selling pressure at $3.5 again.

In the past 24 hours, the token has retreated by more than 5% and currently stands at $3.05 – a key level of support from which XRP has bounced strongly in the past.

Trading volumes have increased by 30% during this same period and currently sit at $12 billion, accounting for nearly 7% of the token’s circulating supply.

Looking at historical data, trading volumes have closed the past 3 days above $8 billion. Those levels are above the typical daily average of around $5 billion and indicate that the selling pressure has been strong but also that buyers have been found at this particular price level.

When volumes increase like that it indicates that both buyers and sellers have encountered an area of interest.

Market Cap of Stablecoins Could Rise to $3 Trillion

A recent report from the crypto market maker Keyrock indicated that the combined market cap of stablecoins could jump by 500% over the next 5 years and could account for as much as 10% of the U.S. M2 money supply.

Stablecoin Supply Growth Projection – Source: Keyrock

The recent launch of Ripple USD (RLUSD) is more critical than ever as the network has now positioned itself to capitalize on some of this growth by attracting demand toward its native stablecoin.

As a cheap and efficient network, Ripple could soon become the preferred alternative to make cross-border payments via a dollar-pegged asset like RLUSD.

Higher transaction activity will drive higher demand toward XRP as the utility token used to pay the network’s fees.

Even though RLUSD is still a tiny player in a big market with a market cap of just $600 million, Ripple’s strong brand and growing popularity in the United States and the Middle East position it uniquely to reap the benefits of higher corporate adoption of stable assets.

In terms of costs and efficiency, RLUSD and XRP are cheap alternatives to send money overseas. Now that the U.S. Securities and Exchange Commission (SEC) has officially dropped its appeal in its long-standing case against Ripple, the road has been paved to launch new solutions that reshape the global digital payments landscape.

XRP Bounces Strongly Off $3 Support Again

The 4-hour chart shows that XRP is bouncing off a key support area at $3. This support level coincides with the token’s 200-period exponential moving average (EMA) in this lower time frame.

XRP/USD 4-Hour Chart (Binance) – Source: TradingView

If a buy signal pops up at these levels, the odds favor a move toward the $3.4 area again. At this point, it is highly likely that we will get a bullish breakout if that happens as most sell orders at that level may have already been filled.

Trading volumes exploded as XRP hit $3, meaning that buying pressure at this level is strong. The $4 level seems the most likely target if such a move materializes.

The launch of a spot exchange-traded fund (ETF) for XRP should also help catalyze the next leg up for this token at a point when its price action is favoring a big bullish move.

Following the approval of the REX-Osprey Solana + Staking ETF (SSK) by the SEC, a spot XRP ETF sounds like a done deal at this point. It is probably just a matter of when, rather than if.