The XRP price was flat on Thursday aligning with the performance of Bitcoin and other coins. Ripple token was trading at the important support at $3, up sharply from last week’s low of $2.7271. So, what next for XRP?
XRP Price Technical Analysis
The three-day chart shows that the XRP price peaked at $3.6640 last month and then started to pull back as some investors booked profits and as momentum in the crypto market waned.
A closer look show that the token has been forming a bullish cup-and-handle pattern, which often leads to more continuation.
The cup section has already been completed, while the price is now in the handle action. This handle is about to end as it formed a hammer candlestick, which comprises of a vertical line and a small body.
XRP price has moved above the 50-day and 100-day Exponential Moving Averages (EMA). Therefore, the most likely forecast is where it keeps rising as bulls target the upper side of the up at $3.40, which was the highest swing in January.
A surge above that resistance means that bulls will start to target the year-to-date high of $3.6, followed by the psychological point at $5. A drop below the lower side of the hammer at $2.73 will invalidate the bullish forecast.
Top Catalysts for the Ripple Token
There are several important catalysts that will drive XRP token higher. First, SBI Holdings recently filed for a spot XRP in Japan as it deepened its relationship with Ripple. If accepted, the fund will make it possible for Japanese institutional investors to allocate capital to XRP.
Second, the Securities and Exchange Commission (SEC) is committed to the cryptocurrency industry. Just this week, the agency noted that some form of liquid staking fell outside of securities law. This is notable as liquid staking has become a multi-billion-dollar industry.
At the same time, the SEC has already approved CME Futures and ETFs tracking these assets. These ETFs like Teucrium’s XXRP and ProShares UXRP have added millions of dollars in assets under management.
The SEC will, therefore, likely approve the top XRP ETFs by companies like Canary, WisdomTree and BitWise. Based on Bitcoin and Ethereum’s performance, these ETFs will likely have substantial inflows from Wall Street investors.
Third, there is a likelihood that BlackRock will apply for a spot XRP ETF. The company, which is the world’s biggest asset manager, has already succeeded as its Bitcoin and Ethereum ETFs hold $83 billion and $10 billion, respectively.
The two funds have become very profitable for the company because of their 0.25% expense ratio. Therefore, the company may want to replicate this success with the third-biggest crypto industry in the world.
XRP price has other potential catalysts, including the growing Ripple USD (RLUSD) assets and the adoption of the XRP Ledger Network.
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