XRP price has formed a falling wedge pattern, pointing to an eventual rebound in the coming weeks as a recently launched spot Ripple ETF gains momentum.
Summary
- XRP price as formed a falling wedge chart pattern.
- It has also formed a bullish pennant pattern on the daily chart.
- The recently-launched XRPR ETF is nearing the $100 million asset mark.
XRPR ETF inflows are rising
Ripple (XRP) was trading at a key resistance level of $3, up 10% from its lowest point in September. However, it remains about 18% below its highest level this year.
There are signs of increased demand for XRP assets among American investors. The recently launched REX-Osprey XRP ETF (XRPR) has continued to experience substantial inflows in recent days. It has recorded inflows on each trading day, with total assets rising to over $83 million.
A similar trend is seen with the Teucrium 2X XRP ETF (XXRP), whose assets have jumped to over $440 million, making it one of the largest crypto ETFs in the U.S.
These ETFs suggest that mainstream offerings from firms like Fidelity and Franklin Templeton could gain significant popularity among investors if approved by the Securities and Exchange Commission. JPMorgan analysts expect such funds to attract over $8 billion in inflows in their first year.
XRP ETFs are likely to draw investors due to the growing interest in cryptocurrencies among U.S. investors. Bitcoin (BTC) ETFs have seen $60 billion in inflows, while Ethereum (ETH) funds are nearing $15 billion.
XRP is a widely followed cryptocurrency, with a market capitalization of over $183 billion. It also offers substantial utility, especially in the payments industry, with its stablecoin nearing $800 million in assets.
XRP price technical analysis
The daily chart shows that the XRP price has formed several bullish chart patterns. It recently developed a falling wedge pattern, characterized by two descending and converging trendlines. These lines are nearing their point of confluence, which will likely result in further upside.
Most importantly, the wedge pattern has emerged after the coin staged a strong recovery from its June low of $1.9105. As such, this wedge may be part of a broader bullish pennant pattern, which often precedes a breakout.
Therefore, XRP will likely experience a strong bullish breakout, potentially reaching the key resistance level at $3.6640—the highest point this year. This target represents a roughly 23% gain from the current price.
