- Ripple’s XRP has seen a surge in buying activity from whales and growing institutional interest, particularly with the rebranding of Bitwise’s XRP ETP in Europe, fueling speculation about an XRP ETF in the U.S.
- If XRP can break through key resistance levels, it could rally to $2.58, but a failure to do so could result in a 30% decline in price.
Ripple’s XRP has been making headlines with significant gains in recent weeks, largely driven by increased whale activity and institutional interest. Following a 6% surge in just one day, XRP is showing signs that it could extend its rally to as high as $2.58, but only if it can overcome some crucial resistance levels.
Whale Activity Fuels Bullish Momentum
One of the main catalysts behind XRP’s recent rally is a marked increase in buying activity from crypto whales. Over the past two weeks, XRP’s exchange reserve on major platforms like Binance and Upbit has decreased by over 500 million XRP, signaling a rise in buying pressure. According to Santiment, whales have contributed the bulk of this demand, increasing their holdings by more than 700 million XRP. This surge in whale interest is a strong indication that institutional investors are gaining confidence in XRP’s long-term potential.
XRP ETF in the Spotlight
Another factor contributing to XRP’s bullish sentiment is growing speculation about the approval of an XRP exchange-traded fund (ETF) in the United States. Bitwise, an asset management firm, recently rebranded its European XRP exchange-traded product (ETP) and confirmed that Ripple would be an investor in the fund. The announcement came amid a growing demand for crypto-backed investment products, which Ripple Labs CEO Brad Garlinghouse believes will continue to rise as the regulatory landscape in the U.S. becomes clearer.
The potential launch of an XRP ETF could play a key role in driving up demand, making the token more accessible to a wider range of institutional investors. This could serve as a powerful boost to XRP’s price, adding further fuel to the fire.
Key Resistance Levels: Can XRP Break $2.58?
XRP has been trading within an ascending channel in recent weeks, with its price oscillating between key levels. If XRP manages to break through the upper resistance line of this channel, it could see a substantial move towards $2.58, a level that would mark a significant milestone for the remittance-based token. However, the road to this price target is not without obstacles.
XRP’s price would need to clear its three-year resistance at $1.96 for the rally to continue. Moreover, if the token fails to maintain momentum and drops below the lower trendline of the channel, it could face a 30% correction, potentially pulling its price down to $0.93.
A Promising Outlook with Caution
The current market indicators, including a Relative Strength Index (RSI) above neutral, suggest that bullish momentum is likely to persist in the short term. However, investors should be aware of the possibility of profit-taking, which could lead to short-term price fluctuations. As XRP continues to gain attention from both whales and institutional investors, its trajectory in the coming weeks will depend largely on its ability to break through key resistance levels and maintain investor confidence.
With the rise in whale activity and the potential for an XRP ETF, Ripple’s XRP seems primed for an exciting ride in the near future. The question remains: will it be able to break through $2.58 and maintain its bullish trend?
