XRP price has remained in prolonged consolidation this year despite numerous positive developments in its ecosystem.
Ripple (XRP) was trading at $2.30 on Wednesday, up 40% from its lowest point this year and 33% below its January high.
XRP has had several catalysts this year. First, the odds that the Securities and Exchange Commission will approve XRP exchange-traded funds later this year have jumped to a record high of 98%. An XRP ETF could be approved as soon as the SEC completes its review of Franklin Templeton’s fund this month. However, the more likely scenario is a delay in approval as it continues to review other filings.
Companies have started adding XRP to their treasuries, emulating MicroStrategy’s approach. VivoPower raised $121 million, while Webus, a Chinese company, raised $300 million. Hyperscale Data plans to buy XRP tokens worth over $10 million. More companies may follow this trend by adding XRP tokens to their balance sheets.
The SEC recently withdrew its appeal against Ripple, a move that could make it easier to secure deals with major U.S. banks. Partnerships are key to RippleNet’s growth as it aims to compete with Swift.
Ripple USD, its stablecoin, has gained MiCA compliance in Europe and received a license in Dubai this week. It aims to become a major player in the stablecoin industry that is estimated to be worth over $1.6 trillion by 2030.
CME, the giant financial services company, recently listed XRP futures contracts, and data shows that it is gaining traction among Wall Street investors.
XRP price technical analysis
XRP price chart | Source: crypto.news
The Wyckoff Method, a theory proposed over 95 years ago, suggests that the XRP price is on the cusp of a significant rally in the coming weeks or months. The theory outlines four stages that assets move through: accumulation, markup, distribution, and markdown.
XRP has now entered the accumulation phase, characterized by low volume and low volatility. The Average True Range, a popular indicator for measuring volatility, has dropped to its lowest level since November of last year.
Additionally, the volume indicator has been in a strong downtrend, while the accumulation/distribution line has trended upward. Therefore, it is likely the coin will soon move into the markup phase, which is marked by higher demand than supply.
This outlook is further supported by the formation of a bullish pennant pattern, with its two trend lines nearing convergence. A bullish breakout could initially push the price to this year’s high of $3.3585, followed by a move toward $5.
