Ripple (XRP) Price: Technical Analysis Shows Potential 120% Rally to $5 Level Maisie Morrison | usagoldmines.com

Ripple’s XRP cryptocurrency is showing resilience at $2.28, up from its April 22 low of $2.06, representing a 10% increase over the past week. The token has maintained its position above key support levels despite some early-week volatility, according to recent market data.

Trading volume for XRP has remained healthy throughout this period, suggesting sustained interest from investors. Market observers note this consistent volume as a positive indicator for XRP’s short-term prospects.

The token is currently trading just below its recent high of $2.35, with technical indicators showing mixed signals about its immediate future.

Chart analysis reveals that XRP has successfully closed above the upper trendline of a falling wedge pattern, which is typically considered a bullish reversal signal. This technical development has caught the attention of several market analysts.

One such analyst, Captain Faibik, has projected a significant rally for XRP. Based on the recent breakout from the falling wedge pattern, Faibik predicts the cryptocurrency could reach the $5 mark, representing a potential 120% increase from current levels.

Technical Support Remains Strong

XRP continues to hold support at the critical $2.20 level, which aligns with the 50-day Exponential Moving Average (EMA). The 20-day EMA sits slightly lower at $2.17, having proven reliable during past pullbacks.

These technical levels are being closely monitored by traders as they could determine whether XRP consolidates or breaks down in the near term.

On the daily chart, the Moving Average Convergence Divergence (MACD) shows the MACD line still above the signal line, which is typically a bullish sign. However, the MACD histogram is shrinking, indicating that upward momentum may be slowing.

Bollinger Bands analysis suggests XRP could be entering a consolidation phase. The cryptocurrency is trading near the upper Bollinger Band, which sometimes indicates overbought conditions. The tightening of these bands may suggest a larger move is coming, but the direction remains uncertain.

ETF Rumors Clarified

Recent market speculation about an imminent XRP ETF launch on April 30 has been dispelled. Both Bloomberg ETF analyst James Seyffart and a ProShares spokesperson have clarified that no official launch is scheduled for that date.

The confusion stemmed from an April 15 regulatory filing that was misinterpreted by some media outlets. While an XRP ETF launch is still expected in the short to medium term, the upcoming ProShares ETFs will be futures-based rather than spot-based.

This distinction is important for traders expecting direct market flows from an ETF listing, as futures-based ETFs typically have different market impacts than spot ETFs.

Market Sentiment Turns Positive

On-chain data shows growing bullish sentiment around XRP. According to CoinGlass data, the token’s OI-weighted funding rate now stands in positive territory at 0.0107%.

A positive funding rate indicates that long position holders are willing to pay short sellers a premium to maintain their leveraged positions. This behavior typically reflects strong market confidence as traders bet on further price increases rather than declines.

The derivatives data highlights a slight increase in Open Interest of 0.09% to $4 billion, indicating that new positions are being opened and reflecting growing trader interest.

However, the long/short ratio of 0.9559 leans slightly toward shorts rather than longs, suggesting some caution among traders. Over $350,000 was liquidated in long positions compared to approximately $59,000 in short positions in a recent four-hour period.

Other analysts offer varying price targets. Chart analyst “Charting Guy” shared a forecast on X (formerly Twitter), pointing to a gradual rally toward $8 for XRP. Before reaching this target, he identified resistance levels at $3 and $4.20.

XRP is currently trading within a descending channel pattern, but after rebounding from its yearly low of $1.61 on April 7, the potential for a substantial rally has increased.

Beyond the immediate resistance at $2.40, supply zones at $2.80 and $3.00 could pose challenges to XRP’s upward movement. Higher trading volume on upward moves will be crucial for pushing XRP toward the $3.00 level and beyond.

XRP’s price action in the coming days will likely be influenced by broader cryptocurrency market trends, ongoing settlement talks between Ripple and the SEC, and the development of futures-based XRP ETFs.