XRP price moved sideways on Monday, Oct. 8, as the crypto market staged a cautious comeback.
Summary
- XRP price has formed a falling wedge pattern on the daily chart.
- It has formed an inverse head and shoulders pattern on the eight-hour chart.
- Demand for XRP ETFs has continued rising since their approval.
Ripple (XRP) token was trading at $2.0825, a level it has remained at in the past few days. This price is about 15% above the year’s low.
XRP price eight-hour chart points to a rebound
The eight-hour chart shows that the XRP token price has formed the highly bullish inverse head-and-shoulders pattern, which is made up of a head, two shoulders, and a neckline.
It has now moved to the right shoulder and is slightly below the neckline. It is also attempting to move above the 25-period Exponential Moving Average.
The Relative Strength Index and the MACD indicators have also pointed upwards, potentially supporting the bullish outlook. Therefore, this pattern means that the token will likely have a strong bullish breakout, potentially to the psychological level at $2.50.
Ripple token formed falling wedge pattern on daily chart
The XRP token price has also formed a falling wedge pattern on the daily chart. This pattern consists of two descending, converging trendlines.
The two lines of this pattern are nearing their confluence. This pattern means that the token will likely have a strong bullish breakout in the coming day or week.
Rising XRP ETF inflows and bearish liquidations
XRP price has some bullish catalysts that may fuel its rebound. For example, data shows that American investors continue to pile into the recently launched ETFs. They have had inflows in all days since the first one was approved on November 14 this year.
These funds have now had over $897 million in cumulative inflows, bringing their total assets to over $861 million. The daily traded volume on Friday stood at $21 million, meaning that these funds have become highly popular among investors.
Meanwhile, Ripple may ultimately start to benefit from the four companies that Ripple Labs acquired this year. It acquired Hidden Road, a US-based prime brokerage. It also acquired GTreasury, Palisade, and Rail, all of which are involved in the financial services industry.
Ripple USD, its stablecoin service, is seeing good growth, with the total supply rising to over $1.3 billion this year. Most importantly, the volume of RLUSD used in transactions has soared in the past few months.
