- XRP’s consolidation phase suggests a potential breakout with targets at $5.85 and $8.76.
- XRP/XAU pair could see growth, driven by gold’s potential topping formation.
- Rising derivatives activity signals increasing investor confidence in XRP’s price action.
XRP has been steady on the daily chart, with signs suggesting the price might be gearing up to break out. Analysts believe the cryptocurrency is gearing up for a big price move, with optimistic forecasts targeting significant resistance points. Trading interest in XRP’s derivatives sector has also jumped, showing greater investor interest.
XRP Eyes Higher Price Walls
According to analyst Dark Defender, XRP is approaching a breakout phase, with Wave 3 pointing to a move towards the $5.85 resistance level. The soon-to-come targets stay at $5.85 and $8.76, while important support areas are pinpointed at $1.88 and $2.33. If XRP keeps its upward momentum, it could test these resistance levels in the near future.
Technical indicators back up this idea, with the Relative Strength Index (RSI) showing more strength. The cryptocurrency seems close to finishing its holding pattern, possibly paving the way for a price surge.
XRP/Gold Ratio Shows Possible Big Gains
Analyst EGRAG CRYPTO points out the chance for XRP’s value to grow a lot when compared to gold (XAU). This different kind of analysis suggests that as gold (XAU) loses value in U.S. dollar terms, XRP’s value against gold will increase, eventually affecting its dollar price.
Related: XRP Supply Limit Stands: No, Ripple Can’t Just Add More
Historically, the XRP/XAU comparison has shown positive patterns, with a strong bounce from the equilibrium point. The latest price movement lines up with a past breakout pattern seen in 2017.
If this trend holds, XRP could copy a large price jump. The analyst thinks gold is getting close to its peak, which could further help XRP’s valuation against the U.S. dollar.
XRP Market Metrics Reflect Rising Interest
XRP is currently trading at $2.44, an increase of 1.38% over the last day and a 4.23% gain this past week. The cryptocurrency has a market value of $141 billion, with daily trading reaching $4.81 billion.
According to Coinglass data, the derivatives market has seen a sharp rise, with volume up by 36.60% to $6.83 billion. While open interest saw a slight drop of 0.38% to $3.60 billion, options volume surged by 141.11%, reaching $2.45K. Open interest in options also climbed by 33.83% to $816.84K, showing rising investor confidence in XRP’s future price action.
SEC Activity and What it Means for XRP
Recent changes inside the U.S. Securities and Exchange Commission (SEC) have caused talk about the agency’s plan for cryptocurrency regulation.
The reassignment of Jorge Tenreiro, the SEC’s Chief Litigation Counsel who played a key role in the Ripple lawsuit, to the IT department has led to guesses that the SEC might rethink its legal strategy against Ripple.
Related: Is XRP on the Verge of a Major Breakout Against Bitcoin?
This event has created optimism that the agency might drop its ongoing appeal against Ripple, possibly reducing regulatory pressure on XRP. If this happens, it could add to market sentiment and help XRP’s long-term growth potential.
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