Is XRP Price Preparing to Skyrocket Above $5 Soon?

XRP price is bullish, along with other major cryptocurrency companies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As expected, Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium in Wyoming bolstered key global markets, including crypto and stocks. Ripple price is down 1.7% in the last 24 hours, but remains 5.5% up in the last seven days.

XRP Price To Skyrocket Above $5: Shrinking Supply on Exchanges, Bullish MVRV Ratio and Futures Market

Within 24 hours, the XRP price outlook shows that the asset might be in a consolidation zone as it slipped below the $0.60 level. However, its fundamentals, starting with the balance on exchanges, are positive, per Santiment data. From the chart below, only 2.65 million XRP tokens are currently held by exchange wallets, suggesting a decline in potential selling pressure.

On-chain data based on the market value realized value (MVRV) metrics paints a more bullish picture for Ripple price. Note that an MVRV 30-day ratio increase from -2.87% to +5.33% for XRP suggests the average holder is realizing a profit spike. It means bullish sentiment and potential upward price movement.

The cross-border money remittance token is also experiencing significant spikes in futures market metrics, implying growing interest and rising price volatility.

Based on Coinglass data, the increase in volume to $1.32 billion and open interest to $722k indicates that more traders are actively participating in the market and contributing to the rising buying pressure.

Moreover, a noticeable rise in options volume to $2.04k and options open interest to $247k suggests that traders speculate on future price movements.

Ripple Price Prediction: Can XRP Skyrocket Above $5?

XRP price dropped below the $0.60 mark and is now trading at $0.59 while the entire cryptocurrency market turns bullish. Although the $5 target seems ambitious for the token, XRP  could start to gain momentum bucked by a potential spot ETF approval buzz.

After the court concluded the lawsuit against the Securities and Exchange Commission (SEC) earlier this month, clearing XRP of alleged security status, chances of a spot ETF approval in the US soared significantly.

Such a development will raise the stakes for XRP as a legitimate global asset, just like Bitcoin and Ethereum.Bitcoin rallied to a new ATH in Q1, bolstered by the rapid uptake of the ETFs. If Ripple ETFs receive the same support, XRP will gain momentum to reach ATH and extend the rally to $5 long-term.

Currently, support at $0.6 is crucial for the uptrend. At the same time, breaking resistance at $0.62 will boost bullish pressure and even trigger FOMO. XRP holds above the 20-day, 50-day, and 200-day EMA, reinforcing the bullish thesis.

Despite the bullish outlook, traders should be cautious about trading XRP in the short term. Resistance at $0.62 will either boost the uptrend to $0.64 and $0.7 or pause the rally. Now that support at $0.6 has been broken, Ripple might drop to retest the $0.58 and $0.55 support areas.