It’s a busy start to the day for Ripple’s XRP with volatility taking it to the key $0.80 level briefly before experiencing a slight pullback again. At the time of writing, XRP/USD is trading at around $0.796.
The bullish sentiment towards the larger cryptocurrencies is likely to keep XRP’s price supported in the near-term and buyers look set to break past the $0.80 mark soon. Ever since Bitcoin managed to cross the $40,000 level and hold steady above it, investors have been returning towards the unpredictable and exciting crypto market, and the uptick in buying has helped Ripple’s XRP enjoy some bullish action as well, despite the legal challenges holding it back from too strong a rally.
On the fundamentals front, the XRP token is likely to enjoy support from recent comments by Ripple’s CTO, David Schwartz, indicating that the company is gearing up to enter the hot NFT market soon. As part of its plans to expand business, the company is exploring bringing NFTs to XRP Ledger as well as grow its ODL (On-Demand Liquidity) payments business across global markets.
The XRP Ledger offers low transaction costs and high speeds of processing, making it an attractive platform to support NFTs on. In addition, Schwartz also offered an update on an upcoming development the company has been working on – that of federated sidechains. This concept, which supports interoperability and offers greater scalability, can offer far higher transaction speeds and volumes, and could be made available within the next few months.
Key Levels to Watch
On the H4 price chart of XRP/USD, almost all the moving averages are supporting a strong bullish bias. However, leading technical indicators MACD and momentum are pointing to the presence of sellers as well.
Ripple’s XRP is holding just above the pivot point at $0.772 at the moment and it looks like buyers are getting ready to give the $0.80 level another go. A break past this can see buyers face resistance at $0.849, after which it can go over the $0.90 mark soon as long as the positive mood holds.