XRP Price Shows Notable Recovery as Anticipation Grows Ahead of Stablecoin Legislation Review

XRP has recently shown a notable price recovery, moving from a local bottom near $2 toward a high around $2.20. This five percent increase comes as

Anticipation is brewing in the crypto sphere as Congress prepares to review new stablecoin legislation on April 2nd. This bill, which aims to establish a regulatory framework for stablecoins, could have significant implications for Ripple (CRYPTO: XRP) and its stablecoin offering, RLUSD.

With the legislation setting the stage for broader institutional adoption, it might propel XRP price toward a substantial rally.

What Happened: Anticipation is brewing in the crypto sphere as Congress prepares to review new stablecoin legislation on April 2nd. This bill, which aims to establish a regulatory framework for stablecoins, could have significant implications for Ripple (CRYPTO: XRP) and its stablecoin offering, RLUSD.

Institutions are increasingly interested in investing in digital assets, but they typically prefer clear regulatory structures to mitigate risk. This legislation is expected to provide much-needed clarity for the stablecoin market.

If the bill ultimately favors RLUSD, this cryptocurrency might experience a rapid increase toward higher valuations.

Analysts who have followed previous instances of major regulatory news impacting crypto prices note that good news for XRP is usually followed by significant price rallies.

Earlier this year, Bitcoin (CRYPTO: BTC) experienced a substantial surge following the approval of the Bitcoin futures ETF, while Ethereum (CRYPTO: ETH) price reacted positively to news of an impending ban on new coins from major Chinese exchanges.

Why It’s Important: As Ripple executives have highlighted the urgent need for clear regulations, they believe a clearly defined legal structure would enhance institutional trust in digital assets.

If the stablecoin bill is written in a way that benefits RLUSD, this cryptocurrency could experience a rapid increase toward higher valuations. Some analysts compare this to previous situations where regulatory clarity prompted price surges for BTC and ETH. If a similar pattern emerges, Ripple price may surge significantly within the coming weeks.

Technical analysis of XRP price from a 24-hour chart. Credit: Benzinga; Chart data via TradingView

From a technical standpoint, XRP price shows potential for further upward movement as it recently broke out from a falling wedge pattern, a bullish reversal structure.

This breakout becomes more apparent when considering the lower timeframe chart, which shows a steeper angle of ascent in the breakout. A deeper analysis reveals that the breakout occurred with strong volume, further indicating the strength of the bullish move.

With strong support holding at $2.02 and resistance at $2.21, traders anticipate a breakout beyond these levels to confirm the next upward phase.

Its Relative Strength Index, or RSI, has recovered from oversold territory, now hovering near 46.74. A move beyond the 50 mark could considerably accelerate bullish momentum.

Additionally, this cryptocurrency’s rebound from the lower Donchian Channel band signals strong buyer interest near important support areas. If XRP maintains momentum above $2.14, its next target appears at $2.50, with potential for a more significant rally toward higher levels.

Can Ripple Price Hit $10 In April With Stablecoin Bill Hopes?Reaching the $10 mark for XRP depends on several factors, with regulatory clarity being the most important.

Analysts suggest that if the legislation favors the company’s RLUSD stablecoin, subsequent institutional demand might propel the XRP price to surge significantly. A mix of growing market confidence, wider adoption, and bullish technical formations supports this optimistic view.

However, challenges persist, including macroeconomic uncertainties and possible price resistance levels in upward trends. Although some traders expect a steady rise, others believe a swift rally might occur if regulatory approval accelerates institutional use.

Last ThoughtsOn April 2nd, Congress is set to review a new bill that aims to establish a regulatory framework for stablecoins. This legislation is a critical element in shaping the future path for Ripple (CRYPTO: XRP) and its flagship stablecoin offering, RLUSD.

If this bill is written in a way that favors Ripple’s stablecoin, we might witness a rapid acceleration of RLUSD toward higher price tiers.