The improvement in broader market sentiment over the past month has benefited XRP. Over the past 30 days, the altcoin's price has increased by 14%, breaking out of a long-standing symmetrical triangle pattern for the first time since 2020.
This breakout has put XRP in a position to potentially surge 200%. However, are market conditions favorable enough to support this move?
XRP's Big Move
Looking at the price action of XRP on the weekly timeframe, it can be seen that it has been trading within a symmetrical triangle since July 2020. When an asset trades within this pattern, it marks a period where the price fluctuates between two converging trendlines, forming resistance and support levels.
XRP’s gradual price increase over the past month led to a breakout above the upper line of the triangle on September 23. The breakout above this resistance level suggests that buyers have taken over, confirming the potential for further upside.
The increase in the token's OI (open interest)* in recent days shows the enthusiasm from investors. As of the time of writing, XRP's OI has reached $1 billion, up 102% over the past 30 days. This is the first time since September 2023 that XRP's OI has surpassed $1 billion.
A spike in an asset's OI signals intense market activity. This is especially promising in bullish conditions, as it shows that the rally has momentum and investors are confident in the trend.
Furthermore, the steady increase in XRP accumulation by whales also confirms the positive outlook for the altcoin. XRP holders holding between 100 million and 1 billion tokens have accumulated 680 million XRP, worth over $435 million at current market prices, over the past two weeks. As of press time, the group owns 9.76 billion tokens, representing 16% of XRP's total circulating supply.
XRP Price Prediction: Could Hit $2
XRP’s relative strength index (RSI) on the weekly chart is trending up, indicating sustained demand for the altcoin, which could fuel its rally. At press time, XRP’s RSI was at 60.32, indicating greater buying pressure than selling activity.
Additionally, XRP’s Moving Average Convergence Divergence (MACD) indicates a potential for a successful retest of the breakout line. Currently, XRP’s MACD (blue) is above the signal line (orange) and the zero line, indicating that its price is strengthening and the uptrend could continue.
If this trend continues, XRP price could potentially surge 203% to $2 for the first time since the early days of the COVID-19 pandemic in 2020.
However, if the market demand and interest in the altcoin declines, the retest of the breakout line will fail. In that case, the XRP price could drop below the support level and trade at $0.26.
*OI (open interest) is a measure of the total value of all outstanding or “unsettled” futures contracts on exchanges, and is also an indicator of market price momentum as well as trader sentiment around a particular asset.
