The cryptocurrency market is buzzing with anticipation as XRP price shows signs of a potential breakout. Currently consolidating around $2.216, XRP has risen by 36% from its lowest levels in April. The recent whale buying spree is igniting hope among investors for a bullish turn in the near future.
Data from Santiment reveals that wallets holding between 1 million and 10 million XRP have escalated their holdings from 3.8 billion in November to 5.9 billion today, marking a gain of 2.1 billion. Additionally, those holding between 10 million and 100 million coins have increased from 6.5 billion to 7.9 billion. This accumulation suggests that large investors, typically more knowledgeable than retail traders, foresee further growth potential for XRP.
Several factors contribute to this bullish sentiment. A pivotal catalyst is the expected approval of an XRP ETF by the Securities and Exchange Commission. Analysts predict that this approval could lead to inflows exceeding $8 billion within its first year. Although the deadline for this decision is set for October, there are speculations of an early approval as soon as June. Consequently, many investors are seizing the opportunity to buy XRP ahead of this possible development.
Furthermore, analysts from Standard Chartered have set ambitious price targets for XRP, forecasting a surge that could see it rise sixfold, elevating its market cap above $600 billion. A continued underperformance of Ethereum (ETH) may even assist XRP in surpassing it in market value. XRP’s position in the stablecoin market is also promising, with its Ripple USD (RLUSD) achieving a market cap of over $330 million. With projections estimating that the stablecoin market could hit $1.6 trillion by 2030, a mere 5% market share for RLUSD could translate into assets exceeding $80 billion.
Technically, the chart for XRP indicates that it remains steady with a strong bullish outlook. The recent breakout above a descending trendline—connected to the highest swing points since January—forms a falling wedge pattern, known for its reversal signals. Currently, XRP is trading above both the 50-day and 200-day Exponential Moving Averages (EMAs) and has set up an inverse head and shoulders pattern. If these patterns hold, XRP could aim for an initial target of approximately $3.40, representing a potential upside of 53% from current levels. However, a drop below the 200-day EMA at $2 could overturn this bullish scenario.
