XRP Price Prediction: XRP Eyes $2.60 After Bullish Price Channel Breakout

The market has set its eyes on the upcoming meeting of the Federal Open Market Committee (FOMC) on Wednesday.

Although nearly 100% of analysts surveyed by FedWatch are convinced that no changes will be made to the federal funds rate, Chairman Jerome Powell’s comments about the state of the economy and other important matters will be scrutinized.

Stalled talks between the United States and China on the trade front along with the latest developments in the Middle East are also affecting the performance of cryptocurrencies recently.

Meanwhile, Ripple recently announced a partnership with Circle – the issuer of the popular stablecoin USDC – to launch this asset in the Ripple network.

This should result in higher transaction volumes for this blockchain as USDC has a market cap of $61 billion and 24-hour trading volumes exceeding $5 billion.

Ripple’s low transaction fees will give users and investors the necessary incentive to rely on this blockchain to send payments.

Incorporating new stablecoins into its ecosystem helps fuel the adoption of Ripple as the go-to decentralized platform for cross-border payments – the project’s main ambition. In addition, it drives higher demand toward XRP – the network’s utility token.

XRP Needs to Clear Two Key Resistance to Get to $2.6

Looking at the 4-hour chart, XRP has broken above its descending price channel in recent days and has already retested this trend line support, which favors a bullish outlook for the token.

The price action has also moved above the short-term and long-term moving averages and XRP has posted a ‘golden cross’ between the 9-period and 21-period EMA. This is a strong buy signal that typically indicates that positive momentum is accelerating.

There are a few resistances along the way for XRP that need to be surpassed to reach the $2.6 level, which is the mid-term target for the token after this breakout.

The first would be at $2.35 and the next at $2.50. If those two thresholds are clear nothing would stand in the way for the token to reach $2.6, meaning a total upside potential of nearly 14%.

Momentum indicators in the 4-hour chart show that this latest uptrend is quite strong as the Relative Strength Index (RSI) is nearing overbought levels while the MACD’s histogram has been on an uptrend for 48 hours in a row.

Lower Time Frame Price Action Favors Bullish Outlook

Heading to a lower time frame, both the 9-hour and 21-hour EMA have crossed above the 200-period EMA. This is a strong bullish signal that favors a push to the first resistance at $2.35 in the next few hours.

Momentum indicators in this lower time frame are heavily stretched as the RSI has been on overbought levels for a while now. Hence, the price could pull back to its short-term EMAs and even to the 200-period EMA to raise the necessary liquidity for its next leg up.

We can see a huge spike in trading volumes as the price is nearing $2.30, which is a key psychological level. This is often not a good indication after multiple bullish candles as it may be an early signal that the price has hit a key level for sellers and profit-takers.

Hence, traders could wait for a pullback to the $2.20 area to get a better entry price for a long position.