XRP price has remained in a tight range in the past few weeks. Its volatility has subsided despite making significant progress in its network, including the launch of an EVM sidechain and the growth of Ripple USD. This article explores some of the top reasons why Ripple is about to rally.
XRP Price Has Bullish Technicals
The main reason the XRP price is poised to surge by 50% to its highest point this year is that it has highly bullish technical indicators.
The daily chart shows that the coin has formed a symmetrical triangle pattern, with the upper side connecting the highest swings since January 28 and the lower one linking the lowest swings since April 7.
The spread of the three Bollinger Bands lines has narrowed substantially in the past few days. In most cases, this consolidation is usually followed by a Bollinger Bands squeeze. As we mentioned earlier, the odds of the coin seeing a bullish breakout have increased because this triangle is part of a bullish pennant pattern.
A bullish breakout will likely push the coin up to its year-to-date high of $3.4, which is approximately 50% above the current level.
XRP price chart | Source: TradingView
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Nasdaq 100 and S&P 500 Have Surged to All-Time High
Another reason the XRP price is expected to surge soon is that there are signs of a risk-on sentiment prevailing in the market.
A good example of this is that the fear and greed index has jumped into the greed zone, at 65. Additionally, the US Dollar Index (DXY) has plummeted to a multi-year low, while the Nasdaq 100 and S&P 500 have reached their record highs.
Therefore, there is a possibility that the crypto market will be the next to surge as the risk-on sentiment prevails. Indeed, the Bitcoin price has already formed numerous bullish patterns, such as the bullish flag and a cup-and-handle, pointing to an eventual surge.
Ripple ETF Approval and RLUSD Growth
XRP price could be on the verge of further gains ahead of the SEC XRP ETF approval. About 10 XRP spot funds have been filed by companies such as VanEck, Bitwise, and Franklin Templeton.
The odds of these funds’ approvals have jumped to over 80%, a sign that investors anticipate they will happen by the October deadline. This approval will bring fresh capital to XRP, boosting its price.
At the same time, the Ripple USD stablecoin continues growing and is quickly approaching $500 million in assets. If this trend continues, there is a likelihood that it will hit $1 billion later this year. Strong RLUSD stablecoin growth is expected to boost the sentiment for the XRP price.
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