XRP Price Forecast: Can Trump’s Crypto Czar Spark a Recovery?

XRP, the native cryptocurrency of the Ripple network, has declined by 7% since Monday, despite a positive outlook from U.S. Crypto Czar David Sacks. Sacks has marked stablecoin legislation as his first priority, which could benefit XRP and its associated stablecoin, RLUSD.

XRP Could Gain from Trump’s Crypto Czar’s First Order of Business

David Sacks, the U.S. Crypto Czar, has set a timeline of six months for stablecoin regulation, which could usher in a “golden age in digital assets and cryptocurrencies.” XRP holders could gain from this development, and the altcoin could begin its recovery.

Ripple’s RLUSD stablecoin has recently announced partnerships with 14 exchanges, including Archax, Bitso, and Bitstamp. This increased adoption could contribute to a bullish thesis for XRP.

Ripple Lawsuit Could End, CTO Has Optimistic Outlook

The SEC’s lawsuit against Ripple in 2020 has led to some partial victories for the payment firm. Recent updates, including the replacement of SEC Chair Gary Gensler with Mark Uyeda, could pave the way for positive regulation.

Throughout the former administration’s War on Crypto, Commissioner Peirce remained a steady voice for regulatory sanity. Today’s memo is another rapid step toward turning the page on the mess we all inherited (and suffered through).

Ripple’s Chief Technology Officer, Stuart Alderoty, has expressed his bullish sentiment on X, citing the positive developments as a potential catalyst for the end of the lawsuit.

Ripple’s On-Chain Metrics Support Bullish Thesis

Ripple’s on-chain metrics, such as total funding rates and active addresses, support a recovery in the coming week. The funding rate turned positive on Friday, and the count of active addresses remains above the 2024 average.

The total value of assets locked on the XRPLedger has held steady above $80 million, indicating investor confidence and relevance of the blockchain.

Technical Analysis and XRP Price Target

XRP started its downward trend on January 16 and currently trades at $2.3986. Technical indicators, such as RSI and MACD, point to a bullish thesis for XRP.

XRP could face resistance at the lower boundary of the Fair Value Gap (FVG) between $2.7874 and $2.8281, marking a 16% rally in XRP price. The altcoin could find support at $2.1491, the December 31 high for XRP.

XRP Bitcoin Correlation and Strategic Consideration

The three-month correlation between XRP and Bitcoin is 0.83, implying that XRP price moves in response to Bitcoin. Traders need to be mindful of this correlation and watch the Bitcoin price chart closely to anticipate volatility in XRP price.

The long/short ratio for XRP is greater than 1 on key exchanges, indicating a bullish stance on the altcoin. Options open interest has remained steady above $3.6 billion.

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Tips for XRP Investors:

  • Keep an eye on the SEC lawsuit against Ripple and its potential impact on XRP price.
  • Monitor the adoption and partnerships of RLUSD stablecoin.
  • Watch the Bitcoin price chart closely to anticipate volatility in XRP price.
  • Consider the long/short ratio and options open interest for XRP on key exchanges.
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