Ripple price is up today, but only just, as the XRP token continues to follow its positive correlation with Bitcoin prices closely. Price action at the moment focuses more on the correlated price movement with Bitcoin prices and on Ripple’s proposed move out of the US.
Ripple Labs is trying to shift attention towards happenings within its ecosystem. The company has also indicated its intention to continue its buyback program to support pricing for its new Line of Credit product. The Line of Credit product was launched in Q2 2020 as an XRP-based blockchain loan facility to allow consumers to borrow Ripple tokens.
However, market attention has continued to focus on moves the company has made in recent times in what is now perceived as a phased exit from the US and into other markets the company considers favourable. Aside from the opening of a new regional headquarters for the MENA region in the DIFC, recent comments credited to CEO Brad Garlinghouse seem to reinforce the narrative of a possible exit from the US markets. Garlinghouse has warned that a Joe Biden presidency could mean more stringent regulations for cryptocurrencies.
Meanwhile, Bitcoin prices continue to trade between the 15,300 – 15,600 range, which has also limited further upside on Ripple prices. The XRPUSD pair currently trades flat on the day at 0.25525.
Ripple price action dating back to 3 November is starting to form a bullish flag pattern. The expectation is for the price to break to the upside, but this move would also need to take out the 0.25983 resistance level. If this is successful, the projected price move from the flag could take Ripple price towards 0.28581. However, this move would have to contend with, and overcome the 0.27082 resistance along the way.
On the flip side, a dip below 0.25345 could challenge the 0.24425 support. If this support gives way, the flag is invalidated and the door thrown open towards 0.22928. 0.21955 could also come into the picture as a potential target if selling pressure overwhelms 0.22928.
