Western Union after ten years of testing "abandoned" XRP and chose Solana, XRP price faces a critical test.

Remittance giant Western Union has announced that after a decade of testing, it has ultimately chosen Solana over XRP as its new payment settlement blockchain, casting a significant shadow over the institutional use case that Ripple has long promoted. The price of XRP is currently at a critical Fibonacci zone, facing a decisive test of whether it will fall back to the demand zone of $2.50 after reaching a peak of $2.66, or break through the 78.6% Fibonacci level of $2.6552. Technical indicators show that bullish momentum is building, but Western Union's decision undoubtedly forces XRP holders to reassess their market positioning.

Core Use Case Stalled: Western Union Chooses Solana

Western Union, the world's largest remittance company with over 170 years of history, dealt a significant blow to XRP's trust by announcing the selection of Solana as its native payment settlement Blockchain.

This decision is particularly noteworthy because Western Union began collaborating with Ripple as early as 2015 and has conducted years of technical testing, including pilot projects using XRP for cross-border payments.

Western Union CEO Devin McGranahan stated yesterday that after testing all the technologies, they comprehensively considered speed, cost, and reliability, and the conclusion they reached is that Solana stands out.

This statement poses a challenge to Ripple's market narrative. Ripple has long positioned itself as an “institutional blockchain” aimed at solving global payment issues. If traditional financial giants like Western Union ultimately turn to its competitor Solana, it will undoubtedly prompt XRP holders to reassess their loyalty to the token and their long-term investment logic.

XRP Price Analysis: Bullish and Bearish Forces Stalemated at Key Fibonacci Zone

Under the impact of fundamental news, the technical trend of XRP is at a critical turning point.

• Fibonacci Test: The XRP price is currently oscillating in the demand zone between $2.56 and $2.61, corresponding to the 38.2% to 100% Fibonacci retracement levels. The market focus is on whether it can break through the 78.6% Fibonacci level ($2.6552).
  • Bullish scenario: If it can break through and stabilize above 2.6552 USD, it will open the way for further rise.
  • Bearish scenario: If the current demand zone is not held and it falls below, it may lead to a price correction to the supply zone near $2.50.
• Ascending Channel and bullish signal: From the 4-hour chart, XRP has been strongly rebounding along a clear Ascending Channel since the low of $2.15 on October 11, indicating that the overall trend remains bullish. An upward trend line is forming, targeting the range of $2.63–$2.65, suggesting that bullish momentum is building.
• Technical indicator warning: However, the TD ( Tom DeMark ) Sequential indicator, a tool that has been quite accurate in predicting XRP trend reversals over the past three months, is currently flashing a sell signal, which is a risk alert that requires caution. Meanwhile, the RSI indicator is at 60.39, in a neutral bullish area, but has not reached overbought, theoretically still leaving room for upward movement.

XRP Price Prediction: Aiming for a 12% rise to break through $3.32

Despite the negative news surrounding Western Union, technical analysis still provides a certain degree of optimism. If XRP can convert the current resistance into support, the market may push it towards the target of $3.3245.

• Potential rise: This target level indicates a potential increase of 12.27% from the current price level.
• Pattern Alert: It is important to note that near the upper boundary of the ascending channel, a bullish wedge pattern is forming, which typically suggests that although the rise continues, the momentum may be weakening.

Given the current bearish fundamentals and the technical tug-of-war, investors should closely monitor the key Fibonacci level of $2.6552 to determine the direction of significant fluctuations in the short term.

Conclusion

The news that Western Union has decided to adopt Solana undoubtedly poses a key fundamental challenge for XRP, forcing the community to reassess its institutional use case's realization capability. Although technically XRP is still within an upward channel and has breakthrough potential, this event will intensify the volatility of XRP's price in key Fibonacci areas. For investors, caution should be the priority at this moment, combining technical analysis with Ripple's future institutional partnership developments to comprehensively assess risks and opportunities.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.