The XRP price retreated for the fourth consecutive days as the crypto market rally stalled. Ripple was trading at $2.1170, down by 12.5% from it 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 done well in the past few weeks, moving 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 lead to over $6.4 billion, a move that would lead to more demand.
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Meanwhile, more data shows that investors are using the recently launched FXRP, which is a yield-bearing product that allows users to earn returns from their XRP tokens. Data shows that over $81.8 million of FXRP have over $81 million in lending protocols and $53 million in liquid staking. Its other uses are in CDP, onchain capital allocation, and decentralized exchanges.
The Ripple USD (RLUSD) stablecoin has continued doing well in the past few months, with the supply rising to over $1.4 billion and the number of transactions rising to over 368k. Also, the adjusted transaction volume stands at $3.4 billion, making it one of the most active stablecoins in the industry.
From a macro level, the token will benefit from the potential Federal Reserve interest rate cuts, with Stephen Miran arguing for a 150 basis points cuts this year. Also, the Supreme Court may decide to end Donald Trump’s tariffs.
XRP Price Technical Analysis
XRP chart | Source: TradingView
The daily timeframe chart shows that the XRP price bottomed at $1.7758, where it formed 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 it with substantial support in the past few days. It has also formed a morning star pattern, which is also 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.
