XRP price has been moving sideways in the last seven days with a weekly high of $2.23 and a weekly low of $2.01. However, a breakout from the consolidation zone could be on the horizon after the US Federal Reserve hinted that it may adopt Ripple’s blockchain. If this happens, how high would XRP rally, and would it realistically reach $20? Let’s explore.
XRP Price in Focus as Fed Hints US Banks Can Use Ripple
Speculation within the Ripple community is rife that the Federal Reserve can integrate the Ripple blockchain for its FedNow payment systems. If this happens, it would bolster a parabolic rally for the XRP price.
Crypto analyst CryptoGeek highlighted a document shared by the Fed on its plans to integrate blockchain technology to bridge the gap between traditional banking and decentralized finance (DeFi). One of the blockchains it plans to use is the Ripple network, which has garnered attention amid the end of the SEC vs. Ripple case.
Another analyst also pointed out that this integration may happen as early as July 14. This is the date that the Fed plans to roll out an upgrade to the Fedwire Funds Service.
This rumoured integration comes after reports that Ripple is partnering with SWIFT. Moreover, by being a US-based blockchain, there is a high chance that the Fed integration will happen. This suggests that the XRP price may be poised for a parabolic rally.
Can XRP Price Hit $20?
If Ripple is integrated by the US Federal Reserve, the price can rally to as high as $20. If XRP price were to reach this price with the supply of 60 billion tokens, it would attain a market capitalization of $1.2 trillion, and emerge as the largest altcoin.
Davinci Jeremie, an early Bitcoin investor who urged people to buy BTC at $1, believes that the XRP price will reach $24 by the end of the year. He noted that support from the US administration would be the key to this rally.
“There is a lot of people in the US government that are pushing XRP. And so we could see possibly, XRP do something crazy.”
Given this XRP price forecast, $20 is a realistic target for the altcoin. Additionally, integration by the Federal Reserve will be a key catalyst for such a rally.
Short Term Forecast for Ripple Price
The daily chart shows that the XRP price has some hurdles to clear before making a strong uptrend. The RSI shows that buyers are hesitant. This indicator saw a steady rise earlier this month, but it is dropping again, indicating that the bearish momentum is growing strong again. Traders should watch out for a lower low in the RSI to confirm a steep downswing.
Conversely, XRP continues to trade above crucial support at the 200-day EMA. As long as Ripple defends this support, it may avoid a steep selloff. A resumption of bullish trends will be confirmed if XRP price can break out of the 50-day EMA at $2.21, which is also the upper trendline of the descending channel. This breakout will shift the market structure to bullish.
XRP price is surrounded by multiple bullish catalysts, including the possible adoption by the Federal Reserve. This may kickstart a rally past 420. However, Ripple needs to break bearish hurdles on the daily chart to record a strong upswing.
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