XRP’s current price stands at $2.10, marking a 3% increase over the last 24 hours, and a 15.5% rise from its low on November 21. Analysts believe there are several contributing factors to this growth potential.
Key Highlights
- XRP may reach new historic highs due to rising interest from institutional investors and positive sentiments among traders.
- Technical analyses suggest a possible increase of 27% towards $2.65.
Surge in Demand for XRP Investment Products
Data from CoinShares indicates persistently high institutional interest in XRP products, with exchange-traded products (ETPs) drawing in $245 million in the week leading up to December 5, accumulating a total of $3.1 billion for the year, overshadowing last year’s total inflow of $608 million.
James Butterfill, head of research at CoinShares, noted that,
“ETP investors believe the current bout of negative sentiment may now have reached its bottom.”
Furthermore, spot XRP exchange-traded funds (ETFs) have seen continued positive inflows, with the latest count reaching a total exceeding $900 million. A crypto investor pointed out on social media that over 400 million XRP tokens are currently locked in these investment vehicles, suggesting significant accumulation, which historically signals potential price shifts.
“This is the kind of accumulation you usually see before a narrative shift.”
Bullish Trends Among XRP Traders
Recent metrics reveal traders on platforms like Binance shifting to bullish positions, now skewed at 72% long accounts. Although this may introduce risks of liquidations, it reflects increasing confidence in XRP.
Technical Analysis of XRP’s Price Movement
Charts indicate that XRP is trading within a symmetrical triangle pattern, necessitating a close above $2.15 for a continued upward trend. Analysts predict that reaching this point could uplift the price to $2.65, presenting a potential gain of 27%.
BD, a pseudonymous trader, stated,
“A breakout here could trigger a move of up to 16%, pushing the price toward the $2.40 zone.”
As ongoing influxes into spot XRP ETFs are likely to determine future price direction, this remains a critical moment for XRP traders as they anticipate market developments.
