The price of XRP has stabilized at $2.20 over the past few days, as the broader cryptocurrency market showed signs of recovery, albeit at a slower pace. This utility token from Ripple has been in a tight trading range, indicating a potential buildup of momentum as bullish patterns emerge, particularly with the ongoing influx of funds into exchange-traded funds (ETFs).
Recent data reveals a notable increase in American investments in XRP tokens, with inflows exceeding $243 million in the past week, compared to the previous week”s $179 million. This rising trend is reflected in various funds, including Canary”s XRP ETF, which currently holds $340 million in assets, while Bitwise has $178 million. Additionally, Franklin and Grayscale ETFs showcase over $85 million and $83 million, respectively. This indicates a robust demand trajectory that is likely to continue with the anticipated launch of more XRP ETFs.
The positive shift is further supported by the upsurge in Ripple USD transactions, with recent data from Artemis showing an impressive supply increase to $1.3 billion. Over the last 30 days, transactions soared past $3.6 billion, reinforcing that XRP is far from being a stagnant asset, unlike many other stablecoins.
However, challenges remain, particularly with ongoing whale selling activities and the current performance of the XRP Ledger. Transaction numbers have seen a decline, and the burn rate has significantly dropped.
From a technical standpoint, analysis of the eight-hour chart indicates that XRP found support at $1.8133 on November 21 and has since climbed to $2.1850. The price has successfully surpassed the 23.60% Fibonacci Retracement level positioned at $2.1185 and has moved above the Supertrend indicator, forming a bullish flag pattern recognized in technical analysis as one of the most positive formations.
This technical setup suggests a bullish forecast for XRP, with an immediate target set at the 50% Fibonacci Retracement level around $2.4600, representing a potential gain of approximately 12% from its current standing. Over the longer term, there are expectations that the coin could rise further, potentially reaching $3, contingent on market conditions and continued demand.
