XRP price rally stalled at the 50-day moving average as traders waited for the October Federal Reserve interest rate decision and the Donald Trump and Xi Jinping meeting.
Summary
- XRP price has some notable catalysts that may push it to $5 soon.
- Ripple may benefit from the rising ETF inflows.
- It will benefit from the upcoming Federal Reserve interest rate cuts.
Ripple (XRP) token was trading at $2.6290, a range it has been in the past few days. Still, the coin has potential catalysts that may push it 92% to $5 this year.
XRP price may hit $5 amid ETF inflows
One catalyst that may drive the Ripple price surge higher is the ongoing demand from institutional investors.
Existing XRP ETFs have done well a few months after their launch, with the newly launched REX-Osprey XRP ETF accumulating over $115 million in assets.
The Teucrium 2x XRP ETF has accumulated over $400 million in assets, a figure that continues to grow.
This growth that the more mainstream XRP ETFs by companies like Franklin Templeton, Bitwise, and Canary will accumulate billions of dollars in assets within the first year since investors see it as a quality utility play.
XRP treasury companies’ accumulation
The other notable catalyst for the XRP price is the potential accumulation from treasury companies. The most recent entry in the industry is Evernorth, a company that has bought XRP tokens worth over $1 billion.
Other companies that have accumulated XRP tokens are Trident, Webus, and VivoPower. This is a sign that there is strong institutional demand for the coin.
Another sign is that the recently launched CME XRP Futures continued to do well this year, with their notional value soaring to over $26 billion in about 5 months. Its futures open interest has continued to rise this year.
Macro catalysts to boost the Ripple price
Meanwhile, macro factors in the United States will likely boost the XRP price later this year.
One of them is the upcoming Federal Reserve interest rate decision, which most analysts expect will be a 0.25% cut. Crypto prices do well when the Fed is cutting interest rates as they did during the pandemic.
The other major macro catalyst for the XRP price is the upcoming meeting between Donald Trump and Xi Jinping at the APEC Summit in South Korea.
A deal between the two leaders will reduce one of the biggest macro risks in the market, which may lead to more demand for risky assets like cryptocurrencies and stocks.
The other important catalyst that may push the XRP price to $5 this year is the growing stablecoin market share, where the Ripple USD is moving closer to the $1 billion asset.
Ripple price technicals points to more gains
The weekly chart shows that the XRP price has bullish technicals that may push it higher this year. It has formed a giant hammer candlestick pattern, which is made up of a body and a long lower shadow.
A hammer is one of the most bullish candlestick patterns in technical analysis. It has also moved above the 50-week and 100-week Exponential Moving Averages.
Therefore, the coin will likely have a strong bullish breakout, potentially to $5. Odds of it moving to that level will rise when it moves above the year-to-date high of $3.6.
