XRP price is showing signs of a potential rally after bouncing from a crucial support level, setting the stage for a possible move toward $3.88 in the coming days.
Key Highlights:
- XRP price rebounded after hitting a critical support zone.
- The token has been trading within a multi-month descending triangle.
- A successful breakout could target a 39% price increase.
XRP was trading at $2.79, up 3.1% in the past 24 hours and 56% above its yearly low. The token’s market capitalization reached $166 billion, with trading volume rising 70% from the previous day. This surge suggests that spot traders are stepping in amid renewed bullish sentiment.
Could XRP Price Move Higher?
Bulls defended the $2.70 support level, a key zone since mid-July. Holding this level is crucial for XRP to sustain its rebound. The daily chart shows the token trading inside a descending triangle for the last seven weeks.
For those unfamiliar, a descending triangle usually signals a bearish trend, formed by lower highs converging toward a flat support line. Here, $2.70 serves as the base and a vital support for XRP price.
If momentum continues, XRP could first target $2.96, representing the recent lower high. A breakout above this could push the token to $3.88, marking a 39% potential upside from current levels.
What’s Driving XRP Price Gains?
Several factors are supporting the bullish outlook:
- ETF Approval Hopes: The U.S. SEC has an October deadline for approving certain ETFs, which could boost investor sentiment. Approval odds are now over 80%, fueling optimism.
- Whale Accumulation: During a recent two-week market dip, whale wallets bought over 340 million XRP (around $962 million). Exchange outflows rose by $268 million, hinting that major players may be quietly accumulating XRP, which often attracts retail traders.
- Institutional Interest: Companies are also taking notice. Japan-based gaming firm Gumi plans to buy $17 million worth of XRP for its corporate treasury, showing that XRP is gaining recognition not just as a speculative asset but also as a potential long-term store of value.
With these catalysts, XRP price could be poised for further gains if bulls continue defending key support levels.
