XRP price was down by 2.5% early on Wednesday, as it struggled to hold above $1. At the time of writing, XRP was trading at $1.03, with a break below the one dollar mark more likely. XRP has been trading sideways over the past one week, but has held above $1. If the asset breaks below that critical support level, it will be the first time in almost a month.
The impending break below $1 and what it could result in
The last time XRP went below $1, it quickly reverted back to an uptrend, going on to register a seven-week high price of $1.34.However, the conditions are starkly different under current circumstances, with the crypto market headed down. Nonetheless, XRP investors are likely to try and sustain the price above the $1 mark in the near-term.
XRP to develop the first government-backed stablecoin
Elsewhere, Ripple has partnered with the Government of the Republic of Palau to develop the first stablecoin for the island nation. However, considering that the country‘s population is less than 20,000 people, the move is unlikely to trigger any price changes. Nonetheless, it symbolizes the strong trust that XRP commands despite its ongoing case versus the US Securities and Exchange Commission (SEC).
Technical analysis for XRP price
XRP price is currently holding above the $1 psychological support level. However, the market momentum is weak and could lead to a breach of the support. He RSI is currently at 41, while the 20-EMA is about to cross under the 50-EMA. That increases the likelihood of losses.
If the bears take charge, the price could head down to the first support at $1.02. However, beyond that point, further losses could lead to the breach of the $1 support. In that case, the second support could be at $0.987. If the momentum increases, the price could rise marginally to the first resistance at $1.06. Beyond that point, the next resistance is likely to come at $1.09.
