4 reasons the price of XRP could rise soon
Ripple has continued its strong upward trajectory this year, outperforming other popular cryptocurrencies such as Bitcoin and Ethereum.
ripple (XRP) by more than 52% in 2024, while Bitcoin rose by only 11%. Most popular altcoins, such as Cardano and Binance Coin, have barely moved.
The first major reason for XRP’s bullish potential is the continued growth of the XRP Ledger network. according to Devi Lamathe total value locked in its DeFi ecosystem rose to a record high of $82 million.
The network is expected to continue expanding this year. For example, according to Queen GekkoSome coins within the ecosystem, such as Sologenic and Crypto Trading Fund, have a market capitalization exceeding $100 million. Others, such as XRP Army, PHNIX, DROP, and Ripples, are slowly gaining market share.
Secondly, Ripple is a US dollar (RLUSD) is witnessing great commercial activity. While its market capitalization remains at $72 million, its daily trading volume is steadily increasing. In the last 24 hours, RLUSD recorded a trading volume of over $162 million, indicating active usage by holders.
Third, there are increasing possibilities that the SEC will approve several XRP ETFs this year. Canary, Bitwise, 21Shares, WisdomTree, and ProShares have all applied for spot Ripple ETFs. according to Polymarket usersThere is a 78% chance that the SEC will approve these funds in 2024.
XRP price has strong technicals
In addition, Ripple has strong technical indicators pointing to further upside in the long term. The most bullish catalyst is the formation of a bullish pennant pattern, above which XRP has already broken. This pattern is characterized by a long vertical line followed by consolidation, which often indicates continued gains.
Ripple has also moved to the final resistance of the Murrey Math Lines tool and is likely to jump to the maximum at 4. MML determines the key support and resistance levels of an asset using mathematical calculations.
The XRP price is also supported by the 50-week and 100-week moving averages, along with the Average Directional Index. This trend indicates that XRP may rise further and retest the key resistance level at $5.
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