XRP’s price remains in a correction after plunging 13% from its highest point this year, but strong fundamentals and a bullish chart pattern point to a potential breakout toward $5.
Summary
- XRP price has plunged into a correction after falling by 13% from the YTD high.
- Ripple has formed the highly bullish cup-and-handle pattern.
- XRP Ledger network growth is gaining momentum.
XRP price to jump as cup-and-handle pattern forms
Technical analysis points to an eventual Ripple (XRP) price bullish breakout. The daily chart shows that the coin has been forming a cup-and-handle pattern since January this year.
The upper side of the cup is at $3.40, while the lower side is at $1.6135, its February low. XRP has completed the cup section and is now in the handle phase.
Notably, a small inverse head-and-shoulders pattern has formed within the handle. The coin has also remained consistently above the 50-day and 100-day Exponential Moving Averages, indicating that bulls are still in control.
XRP has also bottomed at a major support/resistance level on the Murrey Math Lines tool. These technicals increase the likelihood of a breakout, which will be confirmed if the price moves above the YTD high of $3.65.
A move above that level would likely open the door to the psychological $5 mark. The bullish outlook will be invalidated if the price drops below the strong pivot reverse at $2.73.
XRP price chart | Source: crypto.news
XRP Ledger is doing well
The other key catalyst for the XRP price is that the XRP Ledger is doing well, a trend that will continue after the recent acquisitions. Data shows that the ledger’s total value locked has jumped by 16% in the last 30 days to $85 million.
Also, the amount of stablecoins in the network has jumped to over $167 million, with most of them being Ripple USD (RLUSD). RLUSD’s supply has jumped to $642 million this year.
XRP Ledger will see a big increase in activity when Ripple brings its Hidden Road transactions to the network. Also, Ripple will likely use its recent Rail buyout to boost its stablcoin strategy.
XRP ETF approval to boost demand
A major potential tailwind is that the Securities and Exchange Commission, led by pro-crypto chair Paul Atkins, may approve most or all of the pending XRP ETF applications. Such approval could lead to billions of dollars in inflows later this year or in 2025.
As an example, already-approved XRP ETFs from ProShares and Teucrium have attracted millions in assets in recent months. Historically, institutional investors avoid leveraged ETFs, meaning spot funds could see stronger growth.
