XRP price rose slightly on Monday as sentiment in the crypto market improved and odds of a bull run jumped. Ripple token was trading at $3.2635, up sharply from this month’s low of $2.7290. This article explores the top reasons why Ripple price is on the cusp of more gains.
XRP Price Has Strong Technicals
The first major catalyst for the XRP price is that it has strong technicals that will boost its performance in the near term. On the three-day chart, we see that the XRP token experienced a parabolic rise in November last year, bottoming at $0.4915.
Ripple price then surged and initially reached a high of $3.40 in January as investors focused on the XRP reserves news. It then dropped and bottomed at $1.6282, even as the SEC vs Ripple case ended.
Mpst recently, the XRP price surged to a high of $3.66 as the crypto market bull run continued. It then retreated to $2.7290 on August 2, where it formed the highly bullish hammer candlestick pattern.
XRP token has formed a cup-and-handle pattern and is now in the handle phase. The cup’s upper side is at $3.40, while the lower side is at $1.6282, its lowest swing on April 7. The difference between these two, which forms the cup’s height is $1.77.
The XRP price has remained above the 50-day and 100-day moving averages. Therefore, the most likely XRP price forecast is bullish, with the next point to watch being at $5.1. This target is estimated by adding the C&H’s height and the cup’s upper side.
The bullish Ripple price forecast will become invalid if the coin crashes below the handle section at $2.7290. Such a move will point to more downsides, potentially to $2.
Ripple USD (RLUSD) stablecoin growth
The other highly bullish catalyst for the XRP price is the ongoing stablecoin growth. Data by CoinMarketCap shows that the RLUSD stablecoin now has over $562 million in assets.
RLUSD has now become one of the biggest stablecoin in the industry, a notable thing since Donald Trump signed the GENIUS Act into law in July, a move that will streamline the industry.
As things stand, there are three major stablecoins that meet the criteria set in the GENIUS Act: RLUD, PayPal’s PYUSD, and Circle’s USDC. Tether, the biggest stablecoin globally, does not meet the reserve criteria since it is backed by other assets like gold and BTC.
Most of the issued RLUSD are in the Ethereum Chain, with a tiny amount leveraging the XRP Ledger. However, in the long term, there is a likelihood that it more of tokens will move to XRP Ledger, giving it more utility.
Even if it does not, its growth will likely enhance the performance of XRP due to the sentiment among market participants.
XRP coin to benefit from ETF approval and inflows
Further, there is a likelihood that the XRP price will do well because of the ETF approvals by the Securities and Exchange Commission (SEC). 10 companies like BitWise and 21Shares have all applied for a spot XRP ETF, which will likely be approved this year.
All signals show that these ETFs will likely attract inflows once approved. For one, existing funds like Bitcoin and Ethereum have all received substantial inflows, with their combined total being close to $70 billion.
At the same time, existing leveraged XRP ETFs like those from Teucrium and ProShares have had robust inflows. Therefore, the XRP price will likely surge as Wall Street investors continue accumulating.
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