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Highlights
- XRP price has formed a bullish cup and handle chart pattern on the dail chart
- It also formed an inverse head-and-shoulders pattern on the 8-hour chart.
- XRP token will also benefit from the upcoming XRP ETF and RLUSD stablecoin growth.
XRP price crashed below the crucial support at $3 today, August 18, as the crypto market crashed. It has entered a technical bear market after falling by 20% from the year-to-date high. Still, this Ripple price crash will likely be a good buying opportunity as an analyst identified a “too perfect” chart pattern that may push it to $6.
Crypto Analyst Spots a Perfect XRP Price Pattern
Rekt Fencer, a popular crypto analyst and pundit with over 325k followers, notes that the ongoing XRP price pullback could be temporary. He expects the coin to eventually go vertical.
Rekt referred to the chart below, which he notes has formed a cup-and-handle pattern on the daily chart. As the name suggests, this pattern comprises of a rounded bottom followed by a consolidation.
By measuring the cup’s depth and then the same distance from its upper side, the analyst estimates that the coin will eventually surge to about $6 in the coming weeks.
More Technicals Signal a Surge is Coming
The Ripple price has also formed other bullish chart patterns. For example, the eight-hour chart shows that the C&H’s handle section resembles the inverse head-and-shoulders pattern.
This pattern has four key sections, including a head, two shoulders, and a neck. Its bottom on Monday aligned with the left shoulder at $2.96, while the neckline is at $3.3787.
The distance between the neckline and the head is about 20%. Therefore, extrapolating the same distance from the neckline gives it a target of $4.06.
Ripple Price Has Potential Catalysts For a Surge
The upcoming XRP price rally is supported by several catalysts. Whales continue to buy the Ripple token, signaling that they expect the price to resume its bullish trend.
A good example of this is one whale who bought coins worth $61 million on Upbit during the weekend. More signals point to continued whale activity, which normally precedes a strong surge.
The ongoing whale buying partly explains why the exchange netflow has been negative in the past few months. CoinGlass data shows that the XRP tokens worth over $10 million exited exchanges last week after an additional $30 million exited a week earlier.
A closer tabulation shows that the spot inflow/outflow was worth nearly $1 billion since the end of June. This is a positive thing as it shows that investors are moving their tokens into self-custody, expecting the price to rebound.
XRP price has more catalysts. The most notable one is that the SEC will likely accept all or most of the 10 spot XRP ETFs later this year. In a recent statement, Brad Garlinghouse, Ripple’s CEO predicted that the approval would happen in October this year.
XRP ETFs will likely have substantial inflows from American investors because of its role in the crypto industry. It is the third-biggest coin with a valuation of $180 billion, is highly liquid, and has a utility.
The other bullish driver is that the Ripple USD (RLUSD) market capitalization has jumpd to $666 million, meaning that it will cross the $700 million milestone soon. Surging RLUSD growth is a positive thing as it leads to more utility for the XRP Ledger.
Frequently Asked Questions (FAQs)
1. What is the most bullish technical catalyst for the XRP price?
2. How high can the XRP token get?
3. What are the top drivers for the Ripple price?
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