As XRP rallied to $5, investors made $1 billion

XRP investors made roughly $1 billion on Wednesday after its 20% surge.

Options traders see XRP hitting $5

XRP might reach $5 if it violates a flag channel's upper barrier.

XRP rallied Wednesday as it sought to test a crucial flag channel's upper threshold. Investors made roughly $800 million after the price climb, while options traders gambled on the remittance-based cryptocurrency reaching $5.

As investors take profits, XRP options indicate bullish momentum.
Since Ripple got clearance to launch its RLUSD stablecoin on Tuesday, XRP has risen over 20%. Investors have earned roughly $800 million since the slide below $2. This tendency of strong profit-taking after large price increases might halt XRP's bullish momentum.

XRP's weekly active addresses have also decreased, from 496K last week to 341K on Wednesday. This indicates XRP's declining on-chain activity and investor interest.

Amberdata reports that the $5 call is the second-most traded XRP option, indicating that traders favor an upward advance, CoinDesk said.

The $5 options exchange call Deribit has the largest out-of-the-money call open interest at $1.25 million. Out-of-the-money calls have a strike price greater than the underlying asset's market price.

XRP bull flag suggests $4.75 surge
After consolidating for days, XRP is displaying a bull flag.

A strong price surge, called the flagpole, is followed by a flag-like consolidation before a breakout.

If XRP maintains strong volume above the flag channel's upper barrier, the surge may continue with a maximum profit goal at $4.75. To make such a move, it must overcome psychological opposition approaching $3.00.

Relative Strength Index and Stochastic Oscillator momentum indicators are above neutral and rising, suggesting optimistic enthusiasm.

A daily candlestick closure below $1.35 will disprove the argument and drive XRP below $0.93.

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