Why did the price of XRP increase today?

The price of XRP (XRP) rose today, as the gains were made in conjunction with Ripple's inauguration committee for US President-elect Donald Trump and other events.

Ripple Donates $5M in XRP to Trump's Inauguration

The price of XRP jumped more than 20% in the last 24 hours and reached 2.36 on December 21st. The price rally comes after crypto exchanges Coinbase and Kraken reportedly donated $1 million to Trump's inauguration committee.

Fox Business first broke the news, with Replum revealing that Ripple may be donating $5 million in XRP to the same event. Last week, The New York Times quoted Ripple CEO Brad Garlinghouse as making a similar suggestion.

Coinbase, Kraken and Ripple are all fighting separate lawsuits from the US Securities and Exchange Commission (SEC). Trump's re-election boosts the chances of a friendly SEC led by candidate Paul Atkins, known for his pro-crypto stance.

XRP holders may see this as a step toward resolving Ripple's ongoing legal battle with the SEC, which has led to its price rally today.

XRP techniques indicate further gains in the future

Today's rise in XRP price is connected to critical technical support levels.

First, XRP's Relative Strength Index (RSI) on the 4-hour chart briefly dipped below 30 in oversold territory. This often indicates that it can be flipped, prompting buyers to jump in and push the price up.

Secondly, XRP found support from the 200-4H Exponential Average (200-4H EMA, the blue wave) around $2.00. This support coincides with a horizontal support zone (marked in red), a region that has historically acted as a strong rallying point.

Related: XRP Price Chart ‘Bull Flag' Targets $15 Despite Consolidation Phase

However, looking at the daily chart, XRP price seems to have formed a descending triangle pattern, confirmed by the falling trendline resistance and horizontal trendline support.

Descending triangles during an uptrend are considered bearish reversal patterns. According to technical analysis, they are resolved when the price breaks below the horizontal trend line support and the peak height of the triangle is reduced.

Applying the same principle to the XRP/USD chart brings the low target for December to $1.77, a 22.50% drop from current price levels. This price target corresponds to the 50-day EMA (red wave).

Conversely, a break above the triangle's upper trend line could invalidate the bearish setup, putting XRP price on a path to $2.90, the December high.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.