XRP (XRP) price is up today, with its gains coinciding with Ripple’s donation to US president-elect Donald Trump’s inaugural committee and amongst other events.
Ripple donates $5M in XRP to Trump’s inauguration
XRP’s price jumped by over 20% in the last 24 hours to reach $2.36 on Dec. 21. The price rally came after crypto exchanges Coinbase and Kraken reportedly donated $1 million to Trump’s inaugural committee.
XRP/USD four-hour price chart. Source: TradingView
Fox Business broke the news first, with its report mentioning that Ripple will likely donate $5 million in XRP for the same event. Last week, The New York Times cited Ripple CEO Brad Garlinghouse suggesting the same.
Coinbase, Kraken, and Ripple are all battling the US Securities and Exchange Commission (SEC) in separate lawsuits. Trump’s reelection has boosted the odds of a friendlier SEC under the leadership of his nominee Paul Atkins, known for his pro-crypto stance.
XRP holders may perceive this as a step toward resolving Ripple’s ongoing legal battle with the SEC, leading to its price gains today.
XRP technicals indicate more gains ahead
XRP’s price rise today coincided with critical technical support levels.
Firstly, XRP’s relative strength index (RSI) on the 4-hour chart briefly dipped into oversold territory below 30. This often signals a potential reversal, prompting buyers to step in and drive prices higher.
XRP/USD four-hour price chart. Source: TradingView
Secondly, XRP found support near its 200-4H exponential moving average (200-4H EMA; the blue wave) around $2.00. This support further aligns with a horizontal support zone (marked in red), a region historically acting as a strong accumulation area.
Related: XRP price chart ‘bull flag’ targets $15 despite consolidation phase
However, looking at the daily chart, XRP price appears to have formed a descending triangle pattern, confirmed by its falling trendline resistance and horizontal trendline support.
Descending triangles appearing during an uptrend are considered bearish reversal patterns. As a rule of technical analysis, they resolve when the price breaks below the horizontal trendline support and falls by as much as the triangle’s maximum height.
XRP/USD daily price chart. Source: TradingView
Applying the same principle on the XRP/USD chart brings its downside target for December to around $1.77, down 22.50% from the current price levels. This price target aligns with the 50-day EMA (the red wave).
Conversely, a breakout above the triangle’s upper trendline may invalidate the bearish setup, setting the XRP price on the path toward $2.90, its December high.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
