XRP price has pulled back from the year-to-date high. Ripple was trading at $2.0570, down sharply from the year-to-date high of $3.6600, costing investors billions of dollars. This XRP prediction explores whether it is a buy as ETF inflows jump.
XRP Price Technical Analysis
The daily timeframe chart reveals that the Ripple token has dived from $3.66 to a low of $1.8430. Its lowest level this month was notable as it coincided with its October lows. It has struggled to move below that level several times since November last year.
A closer look shows that the XRP price has formed a small double-bottom pattern whose neckline is at $2.6930, its highest point on October 28. A double-bottom is one of the most common bearish patterns in technical analysis.
Ripple price has formed a small hammer pattern, which is made of a small body and a long lower shadow. This pattern is one of the most common bullish reversal patterns in technicals.
Therefore, there is a likelihood that the token will continue its relief rally. Such a rebound could see it rebound to the important resistance level at $2.50, which is about 23% above the current level.
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However, a move below the support at $1.8430 will point to more downside, potentially to the 78.60% Fibonacci Retracement level at $1.1740. This price is ~42% below the current level.
XRP price chart | Source: TradingView
Ripple ETF Approvals to Boost the Price
One potential catalyst for the XRP price is that at least two exchange-traded funds (ETFs) will debut in the United States this week.
Grayscale will launch its fund on Monday, Nov. 23, while Franklin Templeton may do it later this week. These launches will be important as they will boost inflows from American investors.
Data shows that there is strong demand for the coin from these investors. The Bitwise and Canary XRP ETFs had over $11.8 million in inflows on Friday, bringing the cumulative inflows to $422 million. The two funds now holds about $384 million in assets, which is equivalent to 0.33% of its market cap.
There are other potential catalysts for the XRP price. The XRP Army is one of the most active communities in the crypto industry. It is also going after a large market opportunity in the cross-border payment industry. This is notable as Ripple is being mentioned in the new ISO standard.
Additionally, there are signs that the XRP Ledger is doing well, with the amount of stablecoins in the network jumping to $309 million. Its DEX volume is also rising, hitting over $20 million in the last 24 hours.
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