The price of the native token of the XRP Ledger has surged by more than 42% so far this year to a seven-year high at around $3.3 at the time of writing, but a key technical indicator suggests the bull run has only just begun.
XRP is breaking out of a symmetrical triangle on its price chart, a pattern that is formed by drawing trendlines, one falling and another one rising, along a converging price range. To confirm a valid break and not a false one, traders should look for a surge in volume and at least two consecutive closes beyond the trendline, according to Investopedia.
Symmetrical triangles usually indicate that the price will continue in the same direction as before the triangle formed. Therefore, traders would expect the price to break upward if a symmetrical triangle follows an uptrend.
Popular cryptocurrency analyst Ali Martinez noted that XRP has broken out of the symmetrical triangle on the monthly chart after its recent rise “indicating a potential upside target of $15.”
XRP is outperforming the broader cryptocurrency market due to several factors. A recent report from JPMorgan suggests that a spot exchange-traded fund (ETF) for XRP could attract billions of dollars in investor funds.
As most digital assets, XRP surged on expectations of a more crypto-friendly regulatory environment under President-elect Donald Trump’s administration. Anticipated policy shifts, such as establishing a strategic Bitcoin reserve and appointing Paul Atkins as head of the SEC, have boosted investor confidence.
Atkins, a crypto-friendly figure, is seen as a suitable choice to lead the SEC, which has been involved in a legal battle with Ripple, a major player in the XRP ecosystem, over Ripple’s XRP sales.
Trump’s pro-crypto stance has led many to speculate that XRP could soon launch a spot ETF, providing exposure to it. Several companies, including Bitwise, Canary Capital, WisdomTree, and 21Shares, have already filed for spot XRP ETFs. Ripple’s CEO, Brad Garlinghouse, has suggestedthat such a fund is “just inevitable.”
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