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Highlights
- XRP price teteers below $3 as the broader crypto market retreats.
- A bullish convergence hints a rally to $4.50 might happen in the near term as the XRP/ETH ratio surges.
- This rally could be driven by instututional demand as the Teucrium ETF hits a $248M milestone.
XRP price is retracing alongside the broader cryptocurrency market as it trades at $2.92 today, July 15, with a 3.29% decline in 24 hours. Despite this drop, a bullish convergence on the daily chart and the XRP/ETH ratio signals the potential of a rally to $4.50 in the near term. The possibility of such gains happening is notably high amid institutional demand reflected in the $284 million milestone achieved by the Tecrium XXRP ETF.
XRP Price Gears for Rally to $4.50 as Bullish Convergence Appears
The XRP price might be dropping today, but bullish signs are still lingering to suggest that the upward trend is likely to resume. The main sign is the convergence of the 50-day SMA and the 150 SMA, an indication that in the short term, a bullish trend could prevail, and this may create a strong rally.
This signal is appearing as the DMI indicator also shows that bulls are not relinquishing their control of the market despite the reversal seen in the last 24 hours. The positive DI is rising while the negative one is dropping to show that bulls are having the upper hand.
At the same time, the ADX indicator is sloping north to show that the uptrend that pushed Ripple price from $2.24 to $3 in the last seven days is still going on. This might allow the ongoing rally to continue to the 161.8% Fibonacci level of $4.50.
However, for this bullish forecast to play out, the price must move past the resistance zone that lies between $3.05 and $3.16, and until XRP can close above this zone, buyers might hesitate to accumulate more tokens at the current price.
The bullish XRP price prediction seen above is more likely to happen, considering the breakout from a seven-year pattern that previous CoinGape analysis revealed might cause a gain to $38.
XRP/ETH Breaks 2-Month Range as Institutional Demand Soars
The XRP/ETH ratio has broken out of a two-month consolidation range, and this is likely being aided by growing demand from institutions. When this metric is rising, it shows that the XRP price is performing better compared to Ethereum, and this might help to drive the rally towards $4.
The growth in the ratio is happening when the level of institutional interest directed towards XRP is high. The Teucrium XXRP ETF has amassed more than $284 million in assets after less than four months of trading.
At the same time, CoinGape reported that XRP CME volumes have gained more than $1.3 million in total trading volumes after record-breaking activity last week, a sign that there is appeal from institutional investors that might be looking to get exposure to this token.
Therefore, when institutions are beginning to turn their attention towards the XRP token as the price teeters just below $3, the gains may continue as traders look to see whether it might reach $4.50 just as the bullish convergence between the SMAs suggests.
Frequently Asked Questions (FAQs)
1. Can XRP price reach $4.50?
2. What factors will drive the next XRP price rally?
3. Why is the XRP/ETH ratio rising?
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