As the cryptocurrency market moves sideways with low volatility across lower time frames, XRP's price tends to rise. According to some analysts, this cryptocurrency will revisit previous highs when completing an important bullish price pattern.

At the time of writing, XRP's price is trading at $2.33. In the past 24 hours, this digital asset has increased by 2.5% in value and has risen nearly 7% over the past seven days, according to data provided by CoinGecko.

XRP Prepares for Further Increase

Analyst Ali Martinez has been tracking the price performance of XRP. As can be seen in the chart below, this cryptocurrency is about to complete an inverse head and shoulders pattern.

If the cryptocurrency successfully completes this pattern, the analyst believes it could achieve a breakout to the $2.60 area. In this regard, traders should closely monitor any bullish price action near the $2.35 area and an hourly close above this level as potential confirmation.

Last week, Martinez pointed out a similar breakout when XRP's price hovered around $2.20. However, at that time, this cryptocurrency did not achieve a breakout at $2.35 and continued to trade in a tight range between this level and $2.13.

Another analyst believes that XRP is close to a bullish rally and sets a higher target than Martinez's claim that this cryptocurrency could reach $2.69 in the short term. For this analyst, a breakout above $2.40 holds the key to future gains. The analyst states:

$XRP's strength is saying something. Something is going on.

What is the momentum behind this move?

The positive performance of XRP's price may be due to large capital inflows into its ecosystem. A report from CoinShares claims that total assets under management for cryptocurrencies have reached a record high of $188 billion, with $1 billion just in the past week.

XRP has seen an inflow of $335 million to date and an inflow of $10.6 million in the past week. Some analysts believe that this inflow reflects optimistic expectations for this cryptocurrency as Ripple is about to receive a banking license from the U.S. Office of the Comptroller of the Currency.

If the company can secure this license, the XRP Ledger ecosystem will certainly see widespread adoption from more users, especially from the U.S., transitioning to the RLUSD stablecoin.