Traders spot a key XRP signal that could unlock a massive rally

XRP is once again attracting market attention. While Bitcoin and Ethereum ETFs are seeing ebbs and flows, the Ripple-linked token is benefiting from sustained inflows and a favorable technical setup. A recent breakout on the chart has paved the way for a target set at $1.95. Between the Chartist signals and the institutional dynamics, the market is now assessing the strength of this move.

A technical break is targeting $1.95

While a drop below $1 in XRP could trigger a liquidation, this move comes from chart analysis. XRP has broken the symmetrical triangle resistance, a technical pattern often associated with a price acceleration phase. After this breakthrough, the token “may advance to $1.95”representing a potential of about 38% compared to the near $1.40 levels seen at the time of analysis.

The highlighted technical features are as follows:

• A symmetrical triangle breakout, a chart pattern seen on the daily time frame;
• A theoretical target of $1.95, calculated from the maximum height of the triangle projected from the breakout point;
• An increase of about 5.5% in 24 hours and almost 3% in a week;
• Watching for a weekly close above the 200-week moving average as a confirmation signal;
• It is important to stay above the $1.55 zone to consolidate the bullish scenario.

These levels are key technical indicators for market operators. A breakout of the chart pattern represents a signal, but its validation will depend on the price’s ability to stabilize above the established thresholds.

ETF flows that support momentum

Outside the chart, another element attracts attention: the strength of flows associated with index products. XRP-backed ETFs have seen a streak of five consecutive days of net inflows, even as Bitcoin and Ethereum ETFs have faced significant outflows over the same period.

Entered data on string “streak of five consecutive days of net inflows into ETFs”which is a signal interpreted as strong institutional support. Assets under management for these products would now approach one billion dollars.

This divergence with the flows seen in the major crypto market ETFs suggests a specific interest in XRP in the current context. The absorption of tokens through these investment vehicles can mechanically reduce the available supply in the spot market, helping to fuel buying pressure. If this trend continues, it could serve as the basis for the aforementioned technical setup. Conversely, reversing the flows would challenge the power of the movement.

Technical setups and favorable ETF flows give XRP more visibility in a hesitant market. XRP price breaks away from Bitcoin while its volume jumps 24%, signaling renewed interest. Whether this momentum will be enough to sustain the $1.95 target remains to be seen.

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.

DISCLAIMER OF LIABILITY

The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.