Eric Trump fuels rumor that Ripple will replace SWIFT, while technical analysis of XRP shows a symmetrical triangle pattern that could drive the price to $2.50.
The price of XRP starts the month with sideways movement, oscillating in a narrow range between $2.19 and $2.25. Despite this timid performance, the majority of traders on Binance are opening long positions, optimistic that this cryptocurrency may appreciate after Eric Trump fueled rumors that Ripple could replace the SWIFT system.
Majority on Binance bets on XRP's rise with 71% of long positions.
The current value of XRP is $2.21, with a slight gain of 0.4% in the last 24 hours. Although the price is practically stable, traders on Binance continue to bet that the coin will extend its gains and possibly break the key resistance of $2.30.
According to data from Coinglass, 71% of traders on Binance have opened long positions on Ripple, while only 28% are short. This difference highlights a positive sentiment towards XRP, as the majority of investors expect an upward trend in the price.
Data from Binance shows that 71.66% of accounts are in a long position on XRP against just 28.34% in a short position, reflecting a broadly optimistic sentiment.
This optimistic positioning follows an increase in Ripple's open interest to $3.75 billion. While this indicates a positive sentiment towards XRP, traders should also be cautious of the liquidation risk that comes with high leverage. As Coingape reported, XRP saw a 1000% imbalance in liquidations after a drop to $2.13 caused the closure of many long positions and triggered selling pressure.
Eric Trump fuels rumors about Ripple-SWIFT and boosts optimism.
During his participation in the Token2049 event, Donald Trump's son, Eric Trump, stated that cryptocurrencies will replace SWIFT. He added that the traditional financial system, widely used for international payments, is 'completely broken' and inadequate.
His statement comes amid growing speculation that Ripple's blockchain may replace the SWIFT network, in a move that would be positive for XRP's price. Such a change could trigger a parabolic rise, considering that SWIFT processes $5 trillion daily, equivalent to $1.25 quadrillion annually. For comparison, Brazil's GDP was $2.174 trillion in 2023 (according to the World Bank).
Recent statements from Trump echo what Ripple CEO Brad Garlinghouse said earlier this year about cryptocurrencies modernizing the SWIFT system. If Ripple captures the market share of SWIFT, this could strengthen the upward trend of XRP's price, making this cryptocurrency stand out in the market.
Technical analysis of XRP shows the formation of a promising triangle pattern.
The 4-hour chart of the XRP price shows a positive projection, with the cryptocurrency testing a breakout from a symmetrical triangle pattern, which would mark a continuation of the upward trend. The breakout has been rejected several times at the resistance level of $2.24, but if Ripple can make a decisive close above this level and surpass the barrier of $2.30, this could trigger an 11% increase to $2.50.
However, the RSI shows that a breakout may not happen soon, with a reading of 46 indicating that a bearish momentum is in play. For Ripple to overcome the resistance at the upper trend line of this triangular pattern, the RSI needs to cross above 50 to confirm an upward trend.
The 4-hour chart of XRP shows consolidation in a triangular pattern between $2.15 and $2.30 with the potential for an increase to $2.50 if a breakout occurs.
The optimistic thesis highlighted in this four-hour chart will be invalidated if the price of XRP falls and loses support at $2.15. This would mark a bearish breakout of the triangular pattern and could trigger a sharp downward trend for this cryptocurrency below $2, at which point a cascade of long liquidations would cause an even steeper decline.
