The XRP price surged above a crucial resistance level as the crypto market entered a bull run. Ripple jumped to the psychological level at $2.50, up by over 30% from the lowest point in June. So, how high can the XRP token go during this crypto bull run?
XRP Price Technical Analysis
The daily chart shows that the XRP price has staged a strong bull run in the past few days, reaching a high of $2.50, its highest point since May 15 this year.
This surge was important as the token moved above the descending trendline connecting the highest swings since January 27. The trendline was the upper side of the symmetrical triangle that formed since January.
The XRP price has jumped above the 50-day and 100-day Exponential Moving Averages (EMAs). A move above these averages and the triangle side is a sign that bulls have prevailed.
Meanwhile, top oscillators, such as the Relative Strength Index (RSI) and the MACD indicators, have all pointed upward. It is also nearing the 23.6% Fibonacci Retracement level.
The XRP price has been forming a bullish pennant pattern since going parabolic earlier this year. Its height was approximately $2.87. Therefore, adding this height to its upper side brings the target price to $6.25. This target will be reached if the price crosses the year-to-date high of $3.39.
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Ripple to Benefit From Top Talwinds
The bullish XRP price forecast is based on the fact that the XRP price is expected to benefit from numerous tailwinds within the industry.
First, the Bitcoin price has broken out and surged to a record high, with its cup-and-handle patterns indicating massive gains, potentially reaching $150,000. Such a move will benefit most altcoins, including XRP.
Second, the XRP price is expected to jump due to rising hopes that the Securities and Exchange Commission (SEC) will approve spot Ripple ETFs later this year. These funds are likely to experience substantial inflows, as seen with the spot Bitcoin and Ethereum funds. For example, the highly expensive XXRP ETF has achieved over $176 million in assets three months after its launch.
Third, Ripple Labs is aiming to play an important role in the stablecoin industry. The Ripple USD stablecoin has already surpassed a $500 million market cap and is poised to surpass PayPal’s PYUSD, which was launched in 2023.
Furthermore, Ripple Labs is now free from the Securities and Exchange Commission (SEC) lawsuit, meaning its business to disrupt Swift will continue to grow in the coming years.
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