The XRP price has crashed over the past few months, falling from its year-to-date high of $3.6540 to the current $2.30. Still, there are reasons why the token may rebound in the coming days or weeks.
XRP Price Technicals Point to a Rebound
The three-day timeframe chart shows that the XRP price has traded within a horizontal channel over the past few months. It has remained inside the support and resistance levels at $1.9540 and $3.3700.
This channel is part of a bullish flag pattern, a common continuation signal. This pattern consists of a vertical line and a horizontal channel and often leads to greater gains over time.
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In addition to the larger bullish flag pattern, the coin has also formed a smaller one, shown in blue. Therefore, the most likely scenario is where the XRP price stages a comeback and hits the upper side of the channel at $3.3700. A move above that level will lead to more gains, potentially to $4.
XRP ETF Approvals and Inflows
Another notable catalyst for the XRP price is the possibility that the Securities and Exchange Commission (SEC) will soon approve spot XRP ETFs.
Top companies like 21Shares and Canary have made key filings in the past few days, meaning that the listing will happen later this month or in December.
XRP ETFs will likely be highly successful, as evidenced by the recent performance of existing funds. Teucrium’s XRP ETF has nearly $400 million in assets, while the recently launched REX-Osprey XRP ETF (XRPR) has accumulated over $115 million in less than two months.
Other recently launched ETFs have also raised millions of dollars, with the Bitwise and Grayscale funds having over $600 million in assets. More XRP ETF inflows will likely drive greater demand for the token.
Soaring RLUSD Usage and Supply
Meanwhile, Ripple USD (RLUSD) is gaining market share in the crypto industry. It has accumulated over $1 billion in assets a year after launch, and the monthly volume is accelerating.
RLUSD’s popularity will accelerate as more companies adopt it. For example, Ripple reached a deal with Mastercard and Gemini to incorporate it in credit cards.
RLUSD will likely be incorporated into some of the companies owned by Ripple Labs, such as Ripple Prime (Hidden Road), GTreasury, and Rail. Also, there is a likelihood that Citadel will incorporate RLUSD in its operations after its investment in Ripple Labs last week.
Most importantly, the number of RLUSD stablecoins on the XRP Ledger has continued to rise this year.
To sum it up, XRP price has encouraging technicals, while its fundamentals are improving, which will lead to higher prices.
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