XRP (XRP-USD) traders are increasingly optimistic that the token is on the brink of a significant price movement. This optimism stems from a blend of favorable technical indicators and improving on-chain metrics, leading to discussions of a potential “mega breakout” with some experts eyeing a $5 target by the end of the year.
Technical analysts have pointed out a notable cup-and-handle pattern forming in XRP’s price chart. Analyst Milkybull highlighted this setup, which is traditionally seen as a sign of bullish sentiment. The cup represents a phase of long-term accumulation, while the handle suggests a short-term pullback before a possible breakout. Should XRP’s price move decisively beyond the resistance zone of $2.60–$2.70, analysts project a target of around $5, which would more than double the token’s current price of approximately $2.45.
The recent positive sentiment is further bolstered by speculation surrounding exchange-traded funds (ETFs). Following the U.S. Senate’s agreement to avert a government shutdown, investor confidence within the crypto market has surged, with hopes that this could pave the way for long-awaited regulatory approvals for various crypto products, including XRP. Currently, the DTCC website lists 11 XRP ETF products in various stages of development, involving well-known financial institutions such as 21Shares, ProShares, and Franklin Templeton. While these listings do not guarantee regulatory approval, they indicate that issuers are preparing to launch should the approval come through.
ETF analysts Nate Geraci and Eric Balchunas noted that the conclusion of the budget standoff could potentially “open the ETF floodgates” for new crypto offerings, including spot funds for XRP.
On-chain analysis also supports the bullish outlook, with data from CryptoQuant revealing that XRP’s 90-day Spot Taker Cumulative Volume Delta (CVD) has turned positive for the first time since June. This indicator focuses on whether buyers or sellers dominate market orders and historically, a similar signal preceded a 75% price rally earlier this year. Analysts suggest that the shift towards buyer dominance, combined with increasing ETF enthusiasm, mirrors a similar setup seen earlier in the year.
If past trends hold true and volume confirms this new bullish pattern, XRP might be preparing for a notable upward trajectory as 2023 draws to a close, with the token currently valued at $2.4472. The convergence of positive technical signals and favorable market developments provides a compelling case for traders looking for growth opportunities in the cryptocurrency landscape.