XRP price was stuck in a narrow range on Saturday, even as top coins like Ethereum and Binance Coin jumped to their record highs. This consolidation could be brief as it has top catalysts that may push it up by 75% this month.
Summary
- XRP price has formed a bullish flag and a cup-and-handle pattern.
- Odds that the SEC will approve spot XRP ETFs have jumped.
- The XRP Ledger ecosystem is gaining momentum.
Ripple (XRP) was trading at an important level of $3, up by 90% from its lowest level this year. Here are the top three reasons it may be on the cusp of big moves ahead.
XRP price has strong technicals
Technical analysis suggests that the XRP price has a good setup that may trigger a breakout soon. The daily chart below shows that the current consolidation is part of its formation of the bullish flag pattern. This pattern comprises of a vertical line resembling a flagpole and a descending or horizontal channel.
The price target in this pattern is estimated by measuring the size of the flagpole and then extrapolating it from the breakout point. In this case, the pattern provides a target price of $4.6.
The flag section is part of the handle section of the cup-and-handle pattern that has been forming since January. This cup has a depth of 53%. Therefore, measuring the same distance from its upper side gives a price target of $52, which is about 75% above the current level.
Spot XRP ETF approval odds hit 85%
Ten companies like Invesco, Franklin Templeton, and Bitwise have all applied for spot XRP ETFs, and the odds of their approval are rising. These odds have jumped to 85% on Polymarket and Kalshi.
There is a possibility that spot XRP ETFs will become popular among American investors. One sign for this is that the net inflows of spot Ethereum (ETH) ETFs have jumped to $12.4 billion, a sign that there is demand for altcoin ETFs.
More data shows that the Teucrium XRP ETF has added over $400 million in assets in the past few months. The recently launched ProShares XRP ETF as added over $100 million. Historically, these leveraged ETFs are less popular than spot ones.
Ripple ecosystem growth
The other bullish catalyst for the XRP price is the ongoing ecosystem growth. One part of the XRP Ledger is Ripple USD, which is nearing the $700 million asset milestone. It was recently used in the Bullish IPO, and chances are that it will be used in the upcoming Gemini one.
The RLUSD stablecoin will also benefit from the recent Rail acquisition as it will give it a market share in the payment space. Data shows that RLUSD’s transaction volume in the last 30 days jumped by 15% to $2.7 billion.
The XRP Ledger stands to benefit as Ripple seeks to disrupt the highly inefficient SWIFT network. Its platform enables faster and lower-cost transactions.
