Ripple (XRP) is trading at $0.516, up 2% on the day, and has gained 7% over the last seven days. Its trading volume is also up 1% over the last 24 hours to $1 billion. With a live market cap of  $27.3 billion, XRP cements its #5 position on the CoinMarketCap ranking.

The remittance token continues to gain momentum in the crypto and traditional finance (TradFi) industries alike, leaving many wondering whether it has the capacity to rival Bitcoin.

There's a growing wave of interest in XRP as giants in the finance sector, such as Van Eyck and BlackRock, get ready to increase their crypto footprint. According to a renowned crypto analyst, George Tung, Brad Garlinghouse's hint that the XRP ledger might be a significant player in driving interoperability in the crypto domain puts the blockchain's adoption on the right trajectory.

Some countries, including Hong Kong, are gearing up to ride the crypto wave. With the city nation opening its doors to crypto trading for its citizens, it paints a clear picture: the world is moving swiftly towards mainstream adoption.

And although it sounds a bit impossible, Ripple does have massive potential, and could really be one of the cryptos that fuel the next market bull run.

XRP Price Sits on Strong Support at $0.45

After setting a swing high at $0.95 in mid-July, XRP embarked on a downtrend that has seen it lose more than 45% of its value to the current levels. The cross border payments token has been sealed in this downtrend over the last two months.

The sell-off saw the Ripple price drop below all the major support levels which are now acting as barriers on the upside. The Relative Strength Index (RSI) dropped into the oversold region, reaching as low as 27 on Sept. 11, before recovering to the current levels at 50. This suggests that the buying and selling pressure are currently balancing out.

If Ripple favors buyers, it could climb from the current levels toward the supplier congestion area between $0.54 and $0.56, embraced by both the 50-day and 100-day Simple Moving Averages (SMAs).

This a major hurdle for the bulls which they have to overcome before reaching the short-term target at $0.65. In highly ambitious cases, XRP price may rise to collect the supply side liquidity above this level toward the coveted $1.0 psychological level. Such a move would represent a 94% uptick from the current price.

XRP/USD Daily Chart

Note that even though the price faced stiff resistance upward due to the SMAs, it appears to enjoy robust support around the $0.45 demand zone. It should be remembered that when Ripple rose from this level in July, it went ahead to display an impressive 107% rally to $0.95.

Since then, the price has not been able to drop below this level, despite the intense downtrend experienced over the last two months.

This means that buyers are concentrated within this demand zone. As such, any attempts to pull the price below this level would be met by intense buying from this cohort of investors who may want to increase their profits.

On the other hand, overhead pressure from the 200-day SMA could cause the price to turn down from the current price with the $0.5 psychological level providing the first line of defense. The area around the $0.45 support floor is another important anchor as explained above.

However, if this level gives in, it would trigger massive sell orders that would see XRP tumble toward the $0.30 level.