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Highlights
- XRP price is targeting a 15% rally to $2.64 amid a looming breakout from an ascending triangle pattern.
- Surging open interest driven by heightened speculative interest might drive this rally to $2.60.
- Whale accumulation and RLUSD's growth are also factors that could trigger this surge.
XRP price rallied over the weekend, but the surge has since stalled as it trades at $2.29 today, with a slight 0.5% increase in 24 hours. Several signs have now emerged to suggest that the Ripple token might be on the verge of breaking out to the upside, with the immediate target being $2.60.
Why XRP Price Could Reach $2.60
Several signs have emerged to suggest that the price of XRP is about to undergo a major rally, and it could reach the multi-month high of $2.60 soon. These signs include:
- A looming bullish breakout from an ascending triangle pattern
- Surging open interest
- Whales are aggressively buying XRP tokens
- Ripple’s pursuit of a banking license and RLUSD growth
15% Rally From Bullish Triangle Pattern
The XRP price has created an ascending triangle pattern that often implies that it is about to break out to the upper side if there is an increase in buying activity. This pattern involves a series of higher lows and a firm resistance line, indicating that while the sell-side activity is dropping, buyers remain unconvinced.
If the Ripple price can break out above the resistance level of $2.29 and later retest it as a strong support level, it might rally by 15.31% to $2.64.
To achieve this bullish forecast, the RSI needs to continue holding a value above 50 and avoid dropping below this mean level. This might be possible considering that the ADX line is rising to confirm that the bullish momentum is strong, and the XRP price might break this resistance level and surpass $2.60.
Open Interest Spikes Ahead of Ripple’s CEO’s Senate Testimony
XRP’s open interest has increased significantly in recent days, which is a sign that most of the traders who take speculative positions have re-entered the market. Data from Coinglass placed XRP’s open interest above $5 billion for the first time since May, having added nearly $1.5 billion in two weeks.
The funding rate is positive to show that the traders who are opening positions are longs who are predicting that the XRP price is going to increase further. This may be driven by the upcoming testimony of the Ripple CEO, Brad Garlinghouse, before the US Congress.
As CoinGape reported, Garlinghouse will testify on the CLARITY Act on July 9, which seeks to increase the regulatory clarity in the US crypto industry. This might be a major catalyst that drives the Ripple price to $2.60.
Whales are Betting on XRP Price Gains
Whales are also speculating that the XRP price is going to rally higher, and this is seen in the increase in the amount of tokens that these large addresses are buying. One of the cohorts that is aggressively buying is those holding between 100 million and 1 billion coins, who have seen their holdings grow from 7.6 billion to 8.59 billion.
At the same time, the whales holding between 100,000 and 1 million coins have bought 30 million coins in the last two weeks, which may indicate that these addresses are currently held up in an accumulation phase.
As these addresses increase their demand for this token, it becomes possible that the Ripple price might surge, with the technical structure outlined above making the $2.60 target possible.
Ripple’s Banking License & RLUSD Growth
Last week, Ripple applied for a banking license, and this helped to drive slight gains for the price of XRP. The community is eagerly awaiting to see whether this license will get approval, and if it happens, the XRP price might be on the verge of notable gains.
The other sign making a rally possible is the growth of the RLUSD stablecoin. A recent CoinGape analysis noted that RLUSD’s growth may drive XRP gains following an 800% growth in the stablecoin’s market cap this year as it approaches $1 billion.
In summary, the XRP price might be on the verge of a rally, and the first telltale sign that a rally to $2.60 is in the making is the ascending triangle. Other supporting factors, including the increasing open interest and whale activity, might also influence the recovery.
Frequently Asked Questions (FAQs)
1. Can XRP price rally this week?
2. What factors will drive the XRP rally?
3. Why are whales accumulating XRP?
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