According to Cointelegraph, XRP is currently experiencing the longest period of spot premium, as the spot market trades at stronger levels compared to perpetual contracts. This indicates real buying demand rather than mere speculative trading in futures. Historically, major price peaks for XRP since 2020 have been driven by the perpetual contracts market, leading to sharp collapses due to excessive speculation. However, the current spot premium shows that actual buyers are driving the rise, indicating a more stable price increase.
Glassnode data supports the idea of real demand, showing a steady increase in the number of XRP addresses holding at least 10,000 coins since late November 2024. Despite the price decline of 35% between January and April, the number of large holders, typically seen as patient or strategic investors, continued to rise. This accumulation indicates expectations of further gains, supported by optimism regarding the potential approval of an XRP exchange-traded fund (ETF) in the United States. The SEC's decision to drop its lawsuit against Ripple also bolstered positive market sentiment.
XRP's price is currently trading in a narrow range within a 'descending wedge' pattern on the weekly chart, characterized by converging and downward-sloping trend lines. In technical analysis, this pattern is typically viewed as a bullish reversal signal. Confirmation of the breakout requires a clear move above the upper resistance level of the wedge at approximately $2.52. If XRP successfully breaks this level, the potential target for the pattern indicates a rise towards $3.78 by June, representing an increase of about 70% from current prices.
On the other hand, if XRP fails to break the resistance at $2.52, the price may retrace towards the lower trend line of the wedge, with the potential final breakout point at the top of the pattern near $1.81. A breakout from the $1.81 level will maintain the structure of the pattern, with a potential upward target around $3 by June or July, which is about 35% higher than the current levels. Readers are advised to conduct their own research before making investment decisions, as every trading move carries risks.