3 reasons why Ripple Labs’ XRP is primed for a big upside move

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As a crypto investor, I find myself observing a consolidation period for XRP, the digital currency of the decentralized blockchain developed by Ripple Labs. Meanwhile, my attention is drawn to heavy declines in the value of my other top picks like Solana, Polkadot, and Cardano, which are experiencing double-digit drops.

On Saturdays latest check, Ripple (XRP) was valued at approximately $2.39 – slightly under its projected 2024 peaks. However, significant underlying factors and technical triggers may fuel a surge in value over the coming months.

XRP whales buy the dip

Building up supplies, or accumulating, among large-scale investors in cryptocurrencies, particularly XRP, is often seen as a significant bullish trigger because these investors are thought to be more experienced and knowledgeable. Interestingly, even as the general sentiment within the crypto market deteriorates, data indicates that these XRP whales have persisted in amassing the coin.

As per insights from renowned cryptocurrency investor Ali Martinez, drawing on data from Santiment, it appears that these significant investors (whales) have recently purchased approximately 1 billion XRP tokens over the past 48 hours. This transaction could be seen as a bullish signal for the coin’s outlook.

Whales bought roughly 1 billion $XRP in the last 48 hours!

— Ali (@ali_charts) January 10, 2025

Ripple ETF approval hopes

Currently, traders on Polymarket are hopeful that the Securities and Exchange Commission will sanction a spot XRP exchange-traded fund (ETF) in 2025. A survey with a $5,000 asset pool suggests a likelihood of 68%, while another larger survey with a $30,000 asset pool indicates a probability of 51% that the Ripple ETF will be approved by July 31.

After Donald Trump’s victory in the election, these expectations soared as he pledged to adopt a more favorable stance towards cryptocurrencies. He subsequently appointed Paul Atkins as the nominee for SEC chairman, and has been working on establishing an artificial intelligence and cryptocurrency council.

The interest in Cryptocurrency Exchange-Traded Funds (ETFs) among investors has surged significantly. The ProShares Bitcoin ETF currently manages more than $2.3 billion in assets, and spot Bitcoin ETFs have amassed over $36 billion in investments. In total, Bitcoin ETFs boast over $107 billion in assets, while Ethereum ETFs hold approximately $11.6 billion.

Beyond XRP, crypto enthusiasts are also placing their bets on the possibility of approving Exchange Traded Funds (ETFs) for Solana, Hedera Hashgraph, and Chainlink.

XRP price has bullish technicals

In simpler terms, the patterns in Ripple’s technical analysis are robust and may cause its value to increase substantially over the coming weeks.

The daily chart indicates that XRP is developing a bullish pennant shape, which is a widely used signal in trading for potential continuation. The bottom of this flag was at $0.4913, and the pattern has been taking form since December. A bullish breakout tends to occur when the two lines of the triangle come close together.

1) The XRP price continues to stay above its 50-day moving average, while the MVRV (Market Value to Realized Value) ratio has decreased to 2.5, indicating it could be underpriced. This suggests that a potential buying opportunity might lie ahead. First, investors should focus on the overshoot point of Murrey Math Lines as an extreme indicator. If this level is breached, the next significant levels to monitor would be the 2024 peak at $2.90 and eventually the psychological barrier at $3.00.

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2025-01-11 16:54