- Bullish chart setup: XRP has formed a classic cup-and-handle pattern, signaling a potential breakout to $5.
- Network growth: XRP Ledger’s total value locked has jumped 16% in the last 30 days, boosting bullish sentiment.
- ETF catalyst: Potential SEC approval of spot XRP ETFs could unlock billions in institutional inflows.
XRP Price: A Coiled Spring Ready to Breakout
XRP’s price is in a consolidation phase after plunging 13% from its year-to-date high, but technical and fundamental signals suggest a major rally could be ahead. Analysts are eyeing a move toward the $5 psychological level, with the chart showing one of the most bullish formations in technical analysis — the cup-and-handle pattern.
Also Read: XRP Price Drops 4% After SEC Settlement — Why the Market Isn’t Rallying Yet
Bullish Cup-and-Handle Pattern Forming
Since January, Ripple has been carving out a cup-and-handle pattern, with the cup’s upper boundary at $3.40 and the lower side near $1.6135. This structure, often a precursor to significant upside moves, has now transitioned into the handle phase.
Within the handle, an inverse head-and-shoulders formation has emerged, further strengthening the bullish case. XRP has also maintained its position above both the 50-day and 100-day Exponential Moving Averages (EMAs), reinforcing the idea that bulls remain in control.
The Murrey Math Lines tool shows that Ripple has bottomed at a strong support/resistance level. A breakout above the YTD high of $3.65 could ignite a rapid rally to the $5 mark. However, a drop below $2.73 would invalidate the bullish scenario.
XRP Ledger Growth Adds Fuel to the Rally
On the fundamentals side, the XRP Ledger is experiencing robust growth. In the past month, total value locked (TVL) has surged 16% to $85 million, while stablecoin holdings on the network have climbed to $167 million, dominated by Ripple USD (RLUSD). RLUSD’s supply alone has ballooned to $642 million this year.
Also Read: Ripple Leads Dubai Real Estate Tokenization on XRP Ledger
Future growth could accelerate as Ripple integrates Hidden Road transactions into the ledger and leverages its recent Rail acquisition to advance its stablecoin strategy.
XRP ETF Approval Could Be the Game-Changer
A significant potential catalyst lies in the U.S. Securities and Exchange Commission’s stance on spot XRP ETFs. Under the leadership of pro-crypto chair Paul Atkins, the SEC may approve several pending applications.
Already, leveraged XRP ETFs from ProShares and Teucrium have drawn millions in assets, and the introduction of spot ETFs could bring billions in institutional inflows. If approved, such products could propel XRP’s market cap and price higher in both late 2024 and 2025.
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