The XRP token has experienced a price increase for two consecutive days, coinciding with an improved sentiment in the broader cryptocurrency market and a rise in demand for its exchange-traded funds (ETFs).
Ripple (XRP) token rose to $2.1785, marking a 20% increase from its lowest point in November this year. This rebound is being interpreted as a potential start to a prolonged rally, supported by both fundamental and technical catalysts.
XRP Price Technical Analysis Suggests Further Gains
On the three-day chart, the Ripple price has found significant support at the $1.8520 level, a point that has held firm multiple times since November of the previous year.
The token has formed a falling wedge pattern, with its trendlines approaching a rebound point. Furthermore, it has recently formed a morning star candlestick pattern and is currently developing an inverse head-and-shoulders pattern.
The XRP price has successfully moved above the 50% Fibonacci Retracement level. It has also established support at the strong, pivot, and reverse points identified by the Murrey Math Lines tool.
Based on these technical indicators, the most probable forecast for the XRP price is bullish. The next significant target is the psychological level of $3, which represents approximately a 40% increase from the current trading price.
Conversely, a sustained drop below the support level at $1.8520 would invalidate this bullish outlook for Ripple's price. Such a decline would signal the prevalence of bearish sentiment, potentially driving the price down to the ultimate support level at $1.5625.
Additional Bullish Catalysts for the Ripple Token
The anticipated rebound in XRP's price is also expected to be driven by increasing demand from American investors, who have been actively investing in its spot ETFs.
Data compiled by SoSoValue indicates that the four spot XRP ETFs have collectively recorded $824 million in cumulative inflows, bringing them close to the $1 billion milestone. A contributing factor to this demand is Vanguard's decision to allow its clients to invest in crypto ETFs.
Analysts at JPMorgan project that XRP ETFs could reach $8 billion in inflows within their first year, fueled by robust investor demand.
The XRP price is also set to benefit from sustained demand as indicated by the rising futures open interest. After bottoming out at $3.19 billion on November 22, the daily open interest has rebounded to $3.91 billion. These trends suggest that open interest may have bottomed out and is poised for a rebound as demand escalates.
Furthermore, XRP's price could be positively influenced by macroeconomic factors, including anticipated interest rate cuts by the Federal Reserve and the potential nomination of Kevin Hassett as the next Federal Reserve Chair.