The price XRP/USD pair has been declining this week, continuing to develop the corrective momentum from November 11, when XRP price renewed its September high, testing the $1.35 resistance. Since then, the initiative passed to sellers, who managed to return quotes to the parity area, finally dispelling the hopes of those who counted on a rapid resumption of growth.
Positive news about Ripple
Market participants continue to ignore positive news regarding the Ripple project itself, remaining more sensitive to global market sentiment. As AtoZ Markets reported this week, Ripple CEO Brad Garlinghouse said that the company has made significant progress in litigation with the US Securities and Exchange Commission (SEC).
Garlinghouse noted that the process could be completed next year, and his decisions will affect the entire crypto industry. He also expressed the opinion that the clearest rules for regulating digital assets are now developed in Japan, Singapore, Switzerland, and the United Arab Emirates.
Last week, Ripple executives also voiced the concept of regulating the cryptocurrency sector for the US authorities. The document entitled "A Real Approach to the Regulation of Cryptocurrency" stated that, in addition to protecting the interests of investors, the government should think about creating conditions for the development of innovations in the country.
Further positive news for the entire crypto industry is the long-awaited launch of the first major Bitcoin network upgrade in four years, called Taproot. Now its blockchain will use the Schnorr signature algorithm, which will improve the privacy and security of the network.
The news background completely neutralized the general deterioration in market sentiment, which caused investors to flee from risk. Of course, the cryptocurrency market is no exception. At the moment, there is a record decline in the last months of "long" positions in cryptocurrencies. Investors, fearing that the sell-off will continue, are transferring funds into defensive assets, a special place among which is occupied by the traditional dollar and its digital counterparts, stablecoins.
The reason for the panic is the significant deterioration of the epidemiological situation in the world, which has already forced a number of countries to introduce repeated nationwide lockdowns, which pose a serious threat to global economic recovery.
What is more, two weeks ago, US President Joe Biden signed the $1 trillion infrastructure bill into law, which included language applicable to cryptocurrencies. Specifically, the bill introduces tougher rules for businesses dealing with cryptocurrencies and expands reporting requirements for brokers. It also mandates that in the future, digital asset transactions worth more than $10,000 should be reported to the tax office.
Ripple price prediction - when will XRP begin rising?
With that said, the pressure on the cryptocurrency market in the coming days can only increase, as a result of which the XRP rate may fall. At the time of writing, the XRP price today is trading at $0.94, down 7.57% in the last 24 hours.
The XRP price could attempt to retest the 50% retracement level at $1.17. This run-up would constitute a 15% ascent from $1.01.
While this scenario makes sense, a breakdown of the $0.94 support will suggest that a further downswing towards the next support level of $0.85 is possible. It is this level that we recommend considering as the optimal point for long-term purchases in order to propel the price of the remittance token to $1.5 and above.
Think we missed something in today's XRP price forecast? Let us know in the comment section below.