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Highlights
- XRP price has formed a bullish pattern pointing to an eventual rebound.
- A bullish breakout will likely push it to the resistance point at $3.4.
- The coin will be boosted by the ongoing XXRP ETF inflows.
XRP price trades at $2.2378 today, July 4, down by less than 1% from a day earlier. While it has remained in this range over the past few weeks, several converging factors suggest that a 50% surge is possible.
Ripple price has formed a symmetrical triangle pattern, RLUSD market cap is growing, and the Teucrium Leveraged XRP ETF is gaining traction among investors.
XRP Price Technical Analysis Signals a Surge is Coming
The ongoing XRP price consolidation could be the calm before the storm, leading to an eventual surge, which may occur soon. It has formed a symmetrical triangle pattern in the past few months, with the spread between the two lines narrowing.
The triangle pattern often leads to a bullish or a bearish breakout when the two lines are about to converge. One way to predict the breakout side is to look at the original trend since the breakout normally in that direction.
In this case, the triangle pattern formed after the Ripple price jumped by nearly 500% in November last year. As such, since this is a bullish pennant pattern, there are odds that it will have a bullish breakout in the upper side.
In this case, the potential price target will be the year-to-date high of $3.4, which is about 50% above the current level. A jump above that target price will point to more gains, potentially to the psychological point at $5.
Conversely, a drop below the key support at $1.6147 will invalidate the bullish XRP price forecast. Such a move will raise the possibility of the token falling below the support at $1.
XXRP ETF Inflows are Soaring
A potential catalyst for the XRP price rebound is the growing traction of the Teucrium 2X Long Daily XRP ETF (XXRP) among investors. It has had ETF inflows in all weeks since its launch in April this year. As a result, it is nearing the $160 million milestone in terms of assets.
The growing inflows are notable since the fund has an expense ratio of 1.89%, making it one of the most expensive ETFs in Wall Street. In most cases, popular ETFs have an expense ratio of less than 0.25%.
Also, the growing assets is important because its performance lags behind that of XRP. It has risen by about 15% since inception, while the XRP price has jumped by 24% in the same period.
Therefore, this performance is a sign that the spot XRP ETFs, which may be approved later this year, will have demand in Wall Street. JPMorgan analysts predict that they will attract about $8 billion in inflows in the first 12 months, a move that would boost the price.
Summary
The XRP price has formed a symmetrical triangle pattern and is showing signs of a potential breakout. In addition to the XXRP ETF inflows, the other catalysts that may move its price are the growing RLUSD market cap, which is nearing $500 million, and the increased integration by companies.
Frequently Asked Questions (FAQs)
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3. What is the risk to the bullish thesis?
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