Aniket Pujari
XRP price rose for two consecutive days as sentiment in the crypto market improved and demand for its exchange-traded funds rose.
Summary
- XRP price rose for two consecutive days as the crypto market rebounded.
- Technicals suggest that the token may soon rebound by ~40%.
- XRP ETFs have continued to experience substantial inflows this year.
Ripple (XRP) token rose to $2.1785, up by $20% from its lowest point in November this year. This rebound could be the start of a prolonged rally, as the token has fundamental and technical catalysts.
XRP price technicals point to more gains
The three-day chart shows that the Ripple price bottomed at the important support at $1.8520. It has resisted moving below this level several times since November last year.
The token has formed a falling wedge pattern whose two lines are about to rebound. Additionally, it recently formed a morning star candlestick and is in the process of forming an inverse head-and-shoulders pattern.
XRP price has moved above the 50% Fibonacci Retracement level. It has found support at the strong, pivot, and reverse point of the Murrey Math Lines tool.
Therefore, the most likely XRP price forecast is bullish, with the next key target being the psychological level at $3, ~40% above the current level.
On the other hand, a drop below the support at $1.8520 will invalidate the bullish Ripple price forecast. It will be a sign that bears have prevailed, which will drive it to the ultimate support at $1.5625.
Ripple token has other bullish catalysts
The XRP price will rebound due to rising demand from American investors, who have invested in its spot ETFs.
Data compiled by SoSoValue indicate that the four spot XRP ETFs have recorded $824 million in cumulative inflows, meaning that it may soon hit the $1 billion milestone. One catalyst will be Vanguard’s decision to enable its clients to invest in crypto ETFs.
JPMorgan analysts expect that XRP ETFs will reach $8 billion in inflows in the first year, driven by investor demand.
The XRP price will also benefit from ongoing demand as futures open interest continues to rise. The daily open interest bottomed at $3.19 billion on Nov. 22, and has now rebounded to the current $3.91 billion. There are signs that open interest has bottomed and will rebound as demand rises.
XRP price may also benefit from macro factors, including the upcoming Federal Reserve interest rate cuts and the potential nomination of Kevin Hassett as the next Federal Reserve Chair.
