Analysis of XRP’s Potential for a Big Upside Move
XRP, the native cryptocurrency of the Ripple Labs blockchain, has been consolidating while its top peers like Solana, Polkadot, and Cardano have fallen by double digits. As of the last check on Saturday, XRP was trading at $2.39, just below its 2024 highs. Despite the current market conditions, there are several fundamental and technical catalysts that could propel XRP to new heights in the coming months.
Whale Accumulation
One of the most significant bullish catalysts for cryptocurrencies is whale accumulation. According to data from Santiment, cited by Ali Martinez, XRP whales have been actively accumulating the coin, with approximately 1 billion XRP tokens purchased in the last 48 hours. This level of accumulation indicates that these sophisticated investors are optimistic about XRP’s potential.
Ripple ETF Approval Hopes
The possibility of a spot XRP exchange-traded fund (ETF) approval by the Securities and Exchange Commission (SEC) in 2025 is another factor that could drive XRP’s price upward. Polymarket traders are betting on this outcome, with a small poll showing a 68% chance of approval and another poll indicating a 51% chance of approval by July 31. The nomination of Paul Atkins as the next SEC chair and the creation of an artificial intelligence and crypto council by President Trump have contributed to elevated hopes for a crypto-friendly regulatory environment.
The success of crypto ETFs is evident in the ProShares Bitcoin ETF, which has over $2.3 billion in assets, and spot Bitcoin ETFs, which have attracted over $36 billion in inflows. The potential approval of XRP, Solana, Hedera Hashgraph, and Chainlink ETFs is likely to attract significant investment, further driving up demand for these cryptocurrencies.
Bullish Technicals
XRP’s price chart shows a bullish pennant pattern, a common continuation sign in trading. The daily chart indicates that XRP has been forming this pattern since December, with the lower side of the flag at $0.4913. A bullish breakout is likely to occur when the two lines of the triangle converge. Additionally, XRP has remained above its 50-day moving average, and the MVRV indicator has dropped to 2.5, indicating that the coin is undervalued.
Predictions for XRP’s Future Price Movement
Based on the analysis, there are several potential outcomes for XRP’s price movement:
- Short-term: XRP is likely to break out of its current consolidation phase, driven by whale accumulation and hopes for a Ripple ETF approval. The initial target level could be the extreme overshoot point of the Murrey Math Lines, followed by the 2024 high of $2.90 and then the psychological level at $3.
- Medium-term: If a Ripple ETF is approved, XRP’s price could experience a significant surge, potentially reaching new highs. The success of other crypto ETFs, such as the ProShares Bitcoin ETF, suggests that a spot XRP ETF could attract substantial investment and drive up demand for the coin.
- Long-term: XRP’s potential for widespread adoption, driven by its use in cross-border payments and its growing ecosystem, could lead to a sustained price increase. The development of new use cases and partnerships could further solidify XRP’s position in the market, making it an attractive investment opportunity for both institutional and retail investors.
In conclusion, XRP’s current market conditions, combined with its fundamental and technical catalysts, make it an attractive investment opportunity. The potential for a big upside move is supported by whale accumulation, hopes for a Ripple ETF approval, and bullish technicals. As the cryptocurrency market continues to evolve, XRP is well-positioned to capitalize on its growing ecosystem and potential for widespread adoption.
