The XRP price retreated for the fourth consecutive day as the crypto market rally stalled. Ripple was trading at $2.1170, down by 12.5% from its highest point this week. This article explores why this is not the end of the recent XRP rally.
Why XRP Price Has More Gains to Go
XRP price has performed well over the past few weeks, rising from a low of $1.7758 in December to the current $2.1165. This rebound coincided with the ongoing demand for the token, with the cumulative inflows rising to over $1.21 billion. It has jumped to over $1.50 billion, which is equivalent to 1.16% of the supply.
XRP ETFs have more room to go in the coming years because Bitcoin and Ethereum ETFs have a ratio of over 5%. A 5% surge in funds would bring over $6.4 billion, increasing demand.
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Meanwhile, more data show that investors are using the recently launched FXRP, a yield-bearing product that allows users to earn returns on their XRP tokens. Data show that over $81.8 million of FXRP is lent to lending protocols, and $53 million is locked in liquid staking. Its other uses are in CDP, on-chain capital allocation, and decentralized exchanges.
The Ripple USD (RLUSD) stablecoin has continued to perform well over the past few months, with its supply rising to over $1.4 billion and transaction volume exceeding 368k. Also, the adjusted transaction volume stands at $3.4 billion, making it one of the most active stablecoins in the industry.
At the macro level, the token will benefit from potential Federal Reserve interest rate cuts, with Stephen Miran arguing for a 150-basis-point cut this year. Also, the Supreme Court may decide to end Donald Trump’s tariffs.
XRP Price Technical Analysis
The daily timeframe chart shows the XRP price bottomed at $1.7758, forming a triple-bottom pattern. It also formed a falling wedge, a highly popular bullish reversal sign.
The token remains above the 50-day Exponential Moving Average, which has provided substantial support over the past few days. It has also formed a morning star pattern, a good reversal sign.
Therefore, the most likely scenario is that the Ripple price will bounce back soon. If this happens, the next key resistance level to watch will be at $2.4180, up by 14% above the current level. A move above that price will point to more gains, potentially to the 50% retracement level at $2.7.
