XRP, also known as Ripple, is one of the most prominent names in the cryptocurrency industry. Still, it took some major hits when the market was spiralling out of control. However, the cryptocurrency is slowly gaining momentum, and the price is finally stabilizing at around $2.22. This suggests a bullish XRP movement.
Funding rates of the token are positive but modest. This suggests that some traction is present, but the situation is not yet overblown. On-chain metrics and data also suggest the same factor. Santiment data indicates a positive rise in the Network Value to Transactions (NVT) ratio. There is a positive retreat from a 5-year high. Which suggests a growth in spot movement.
Medium-Term Outlook
XRP just recorded a high-low for its 200-day EMA. In other words, the price moved from a $2.23 pivot to $2.10. If the Bulls continue to close in at $2.30, the next Fibonacci cluster will be waiting at $2.56.
According to on-chain math, if the token manages to break the 2.56 mark, the price could easily reach up to the $3.40 mark. This could be a great stepping stone for the token for a long rally. The RSI of the token is hovering at 55. This suggests that the token is a long way from reaching the over-brought threshold.
XRP ETF Boom
Narratives for XRP suggest that the token is currently on a serious rally to grow. For example, Hashdex released a statement announcing the launch of one of the first spot ETFs based in Brazil. The ETF will allocate 95% of its assets to XRP. This marks a significant milestone in increased institutional interest. Analysts cannot help but notice the uncanny resemblance between the BTC’s 2024 US fund approvals.
Another prominent ETF acquisition of XRP was the acquisition by Hidden Road. Hidden Road invested approximately $1.25 billion in the token. This is huge for the token, as it will help it maximize its bullish run. As a result, it enhances the price movement. If this continues, the price of XRP could reach new highs.
The Possible Derailment
In the world of crypto, nothing is foolproof. Even the most solid predictions can soon become obsolete and redundant. Although XRP is at a positive crossroads, things can quickly turn downhill. For example, a protracted risk-off macro pivot could easily turn the tables and compel the token to cascade into chaos. A speculative panic could push the token back to its $2.00 mark.
Although regulatory clarity is increasing, the market is still in its infancy and requires additional time to recover. One small panic could halt the process, and the price movements can be reversed in a jiffy. Therefore, as an investor, you must not take things at face value, but wait for the right moment and capitalize on the opportunity.
