Key Insights
- XRP price has formed a large bullish flag pattern on the daily chart.
- Ripple USD (RLUSD) stablecoin has continued gaining momentum.
- Spot XRP ETFs have added substantial assets in the past few days.
XRP price rose sharply today, reaching its highest level since August 25 this year. It jumped to $1.4797, up by nearly 50% from its lowest level this month. This rally may continue after it formed a bullish flag pattern and as the Ripple USD (RLUSD) momentum gained steam.
XRP Price Prediction: Technicals Suggest More Gains Possible
The daily chart shows that the XRP price has done well in the past few months, moving from a low of $0.9872 in August to the current $1.4515.
A closer look shows that the token has formed a golden cross pattern, which occurs when the 50-day and 200-day Weighted Moving Averages (WMAs) cross.
The token has remained above the Supertrend indicator, a sign that bulls remain in control for now. Also, and most importantly, it has formed a bullish flag, a popular continuation pattern.
This pattern forms after an asset makes a big move, followed by a descending channel. It closely resembles a hoisted flag. Therefore, the token is likely to see a strong bullish breakout, with the next key target to watch at $1.6975, its highest level in August. A break above that level will point to more gains, potentially to $2.
Ripple USD Growth is Gaining Steam
One of the main catalysts that may drive the XRP price higher is that its ecosystem is seeing strong growth this year. One of the key metrics to watch is that the Ripple USD (RLUSD) growth is gaining momentum.
The RLUSD market cap has jumped to $2.4 billion, much higher than where it started the year at. It started the year at $1.3 billion, making it one of the best-performing stablecoins in the crypto industry. Instead, the PYUSD stablecoin has dropped from over $4 billion to $3 billion today, while its usage has also dropped.
Artemis data show that the daily RLUSD transfer volume has continued to rise and reached its highest level in weeks. Its 24-hour volume jumped by nearly 3% to over $258 million.
Most importantly, the RLUSD market cap is growing on the XRP Ledger network. The amount on the XRP Ledger has jumped to over $1.03 billion, while on Ethereum, it soared to over $1.36 billion.
XRP ETF Inflows are Rising
Meanwhile, American investors have continued to accumulate XRP ETFs, a sign that they expect it to keep growing. Data shows that these funds added over $18.9 million this month.
The funds added over $159 million in assets last month and have added assets in the last six consecutive months. That is a sign that demand has continued rising, a sign that investors are accumulating the coin.
In total, these funds have added over $1.6 billion since their inception and now holds over $1.5 billion in assets. This growth likely explains why the amount of XRP in circulation has continued falling in the past few months.
The same growth is happening across most assets, including Bitcoin, Ethereum, and Solana. Spot Bitcoin ETFs have added $595 million so far this month after adding $3.52 billion last month. Ethereum ETFs have added $104 million this month after adding $1.85 billion last month.
The surge has happened amid rising concerns in the bond market, where yields have soared in the US and other markets. US and European bond yields have soared amid debt concerns, prompting more investors to seek alternative assets.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.
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