$XRP has dropped about 13% from its highest price this year, but the charts and strong fundamentals suggest it might soon shoot up towards $5.
Strong Chart Pattern Forming
Since January, XRP’s daily chart has been forming a “cup and handle” pattern — a well-known bullish signal. The “cup” goes from $1.61 in February to $3.40 at the top. Now, XRP is in the “handle” stage, which usually comes before a breakout.
Inside the handle, there’s also a smaller “inverted head and shoulders” pattern, another sign of possible upside. The price is holding above the 50-day and 100-day moving averages, showing that buyers are still in control.
If XRP can break above $3.65 (this year’s high), the next target could be $5. However, if it falls below $2.73, the bullish outlook would be in danger.
XRP Ledger Growth
The XRP Ledger is also performing well. In the last 30 days, the total value locked has grown 16% to $85 million. Stablecoins on the network have risen to $167 million, driven by Ripple USD (RLUSD), which has grown to $642 million in supply this year.
Ripple is also working on bringing Hidden Road transactions to the XRP Ledger and could use its new Rail acquisition to boost its stablecoin plans.
XRP ETF Could Be the Big Trigger
A big potential driver is the possible approval of an XRP ETF by the U.S. SEC. The SEC Chairman, Paul Atkins, supports cryptocurrency and may approve pending XRP ETF applications soon. This could bring billions of dollars into XRP by late 2024 or 2025.
Recent XRP ETFs from ProShares and Teucrium have already attracted millions, and if spot ETFs are approved, the growth could be even bigger.
