Why did XRP price rise today?
The price of
The main catalysts driving the XRP price higher today include growing rumors of the introduction of spot XRP exchange-traded funds in the US and increasing accumulation sentiment among whales.
Expect price rise with launch of XRP ETF
XRP price rose on Wall Street hopes of launching an XRP ETF in the future.
For example, Standard Chartered analyst Geoffrey Kendric identified Solana (SOL) and XRP as potential ETF competitors after the spot Ether (ETH) ETF was approved in the United States. However, he said these cryptocurrency ETFs will likely be launched around 2025.
“The current dominance of Bitcoin and Ethereum will continue to rise, with a few select ‘next’ winners emerging,” Kendric added.
Coinbase Relists XRP in New York
XRP’s current rally is part of an upward trend that began on May 24 when Coinbase relisted the cryptocurrency for its New York customers.
The exchange had previously delisted XRP from the US market in January 2021 due to a lawsuit filed by the US Securities and Exchange Commission (SEC) against XRP’s parent company, Ripple.
Coinbase’s relisting of XRP comes shortly after the House of Representatives passed the FIT21 bill on Wednesday. The bill, which has received strong bipartisan support, aims to establish clear regulatory guidelines for the cryptocurrency industry to operate in the United States.
XRP whales buy $55 million worth of tokens.
Today’s XRP price rise is more consistent with signs of accumulation among the wealthiest investors, also known as “whales.”
Related: XRPL on-chain transactions increase by 108% in Q1 2024
On-chain data shows an increase in XRP holdings in larger wallets (100 million to 1 billion coins). Meanwhile, wallets holding 10-100 million coins have the highest share of XRP supply. On the other hand, smaller wallets (100,000 to 1 million coins) have seen their share slightly decline over time.
This chart shows strong whale support behind the ongoing XRP price rally.
XRP price rising triangle pattern
From a technical perspective, XRP’s rise is part of a rebound that began after testing the lower trendline of the typical ascending triangle pattern.
The ascending triangle pattern in a downtrend is considered a bearish continuation pattern. It is resolved when the price falls below the lower trend line and falls by the maximum height of the triangle.
Therefore, depending on the point of analysis, the price of XRP is at risk of falling in the range of $0.432-0.467 in a bearish June scenario. Nonetheless, XRP is currently looking for an extended bounce towards the triangle upper trendline around $0.560 by May.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
