Cryptocurrency XRP, the native token of the Ripple network, has shown an impressive bull run this month with promising metrics and unusual patterns hinting at the possibility of further gains. In April, XRP’s price hit a dramatic low, but it has since rebounded spectacularly, rocketing to a high of $3.6510. This impressive price appreciation has expanded XRP’s market capitalization to over $207 billion.
A close analysis of XRP’s performance and network metrics suggest that the token’s price may continue to ascend. According to data from Coin Glass, the futures open interest of XRP has registered a record high of $10.6 billion, leaping upwards from last month’s $3.7 billion low.
XRP’s open interest is most prominently observed on crypto exchanges such as Bitget, followed by others like Gate, Binance, Bybit, and CME. The volume of the futures traded on Binance and Bybit exchanges, in particular, have risen to 5.65 million and 1.85 million, respectively.
Market Capitalization of Ripple USD
Another significant factor contributing to the upward trend of XRP price is the increase in the market capitalization of Ripple USD. It has soared to an all-time high of $532 million. This growth signifies a crucial development as this stablecoin, which had been launched in December, is gradually inching closer to the valuation of PayPal USD, registered at $847 million.
More data indicates further positive news for XRP. The value locked in the XRP Ledger has surged by 70% in the last 30 days, setting another record of $93 million. Simultaneously, the supply of its stablecoin has also shot up to above $93.2 million.
Teucrium’s daily 2X Long XRP ETF’s total assets also achieved a record value of $506.6 million. This high figure suggests a strong demand in the market.
Technical Analysis of XRP price
Observing the daily chart reveals that the XRP price has been riding a bullish wave since hitting a bottom of $0.4860 in November last year. During this bull run, the XRP has maintained its trajectory above the 50-day and 100-day Exponential Moving Averages. It has also managed to stay above the primary support/resistance level of the Murrey Math Lines.
The digital token managed to surpass the vital resistance level at $3.40, which was its high point in January. This level also corresponds to the upper edge of the cup-and-handle pattern. The cup’s depth measures about 55%, and accounting for this distance from the higher side of the cup suggests a potential target of $5.27 for the XRP price.
Conclusion
In conclusion, despite fluctuations common to cryptocurrency markets, XRP has shown resilience and displayed a bullish trend. With higher futures open interest, the rise in the stablecoin supply, increased value locked in the XRP Ledger, the growth of XRP market capitalization, and the break of vital resistance levels indicate a strong potential for further uplift. However, as with any investment, it’s crucial to proceed with informed decision-making and mindful of market volatility.
