XRP price moved sideways on Monday, continuing a consolidation that has been going on in the past few months. Ripple token was trading at $3.118, down by 14.67% from the highest point this month. Technical analysis and whale buying points to more upside in the long-term.
XRP Price Technical Analysis Signals a Surge is Coming
The 12-hour chart shows that the XRP price could be on the cusp of a strong bullish breakout in the coming months. First, the token has remained above the 50-day and 100-day Exponential Moving Averages (EMA), which have provided it with robust support.
Most recently, Ripple has formed an inverse head-and-shoulders pattern. Its head is at $2.7352, while the left and right shoulders are at the psychological point at $3.
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This pattern is part of the formation of the cup-and-handle pattern, a common bullish continuation sign. This cup has a depth of about 55%, meaning that it will likely have a strong bullish breakout, potentially to the psychological point at $5.
The bullish XRP price forecast will become invalid if it crashes below the support at $2.7352 as doing that will be a sign that there are still more bears in the market.
XRP price chart | Source: TradingView
Ripple Token Has Major Tailwinds
The XRP price has multiple bullish catalysts, which explains why it may be on the cusp of a strong breakout. First, the whale accumulation is continuing, with one of them scooping XRP tokens worth over $61 million. Whale buying is one of the most common bullish signs in the market.
Second, XRP price may benefit from the ongoing stablecoin growth, with Citi expecting these tokens to be worth over $1.6 trillion by 2030. Ripple USD (RLUSD), its stablecoin, has reached a market capitalization of over $666 million, a trend that may continue in the coming months.
RLUSD’s growth is important for the XRP price because it leverages the XRP Ledger network. It is also a good way to boost sentiment among traders and investors.
The other bullish catalyst for the XRP token is that the Securities and Exchange Commission (SEC) will approve spot XRP ETFs later this year.
There are signs that these funds will attract investors as Bitcoin and Ethereum funds have demonstrated. Bitcoin ETFs have attracted over $54 billion in assets, while Ether has added over $12 billion in assets. The existing XRP funds like the XXRP and UXRP have added millions of dollars in assets this year.
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