What to Know:
- XRP’s recent rally following the Mastercard partnership announcement has faded, with analysts predicting a further correction.
- The anticipated correction could see XRP revisit the $2.05 level, potentially forming a double-bottom pattern before a more substantial recovery.
- Despite the short-term bearish outlook, Ripple’s advancements in regulated card settlement rails signal long-term growth potential.
The price of XRP experienced a short-lived rally following news of Ripple’s partnership with Mastercard, but analysts suggest a deeper correction may be on the horizon. The anticipated pullback could offer strategic entry points for investors looking to capitalize on XRP’s long-term prospects. Technical analysis points to a potential revisit of the $2.05 level before a more sustained upward trend can begin.
According to crypto market analyst CasiTrades, XRP’s recent upside move was quickly rejected, indicating that the correction phase remains incomplete. The analyst anticipates a return to the $2.05 region, which aligns with the Fibonacci macro 0.5 retrace level, before a larger Wave 4 retracement occurs. This potential double-bottom formation could provide a cleaner completion to the correction phase.
Ripple’s partnership with Mastercard, WebBank, and Gemini to pilot using its RLUSD stablecoin for settling fiat credit card transactions over a public blockchain initially boosted sentiment. This collaboration aims to explore routing Mastercard settlement flows via RLUSD on the XRP Ledger (XRPL), marking a significant step in integrating blockchain technology into traditional finance. Despite the positive news, XRP has since reversed its gains, highlighting the market’s current sensitivity to broader correction trends.
The RSI’s bearish divergence supports the analyst’s call for XRP to return to $2.05.
While short-term price action may be volatile, Ripple’s continued efforts to expand its ecosystem and secure strategic partnerships position it favorably for future growth. The company’s focus on regulatory compliance and real-world utility, as demonstrated by the Mastercard partnership, reinforces its potential within the evolving landscape of digital assets and blockchain technology. Investors should monitor key support levels and regulatory developments to make informed decisions.
Source: Original article
