XRP's Potential for Growth Amid Strong ETF Inflows

According to Cointelegraph, XRP has experienced a significant rebound, climbing nearly 25% from the $2 psychological level over the past week. This surge is attributed to robust daily ETF inflows surpassing $164 million, following the introduction of Grayscale's GXRP and Franklin Templeton’s XRPZ. The cryptocurrency remains bullish above $2, with technical indicators suggesting a potential rise to the $3.30–$3.50 range. However, resistance between $2.23 and $2.50 could trigger a bearish trend, potentially leading to a decline to $1.82. On Friday, XRP maintained its position within the $1.95–$2.05 support band of a prevailing parallel channel. This zone has consistently served as support since December 2024, with each retest resulting in significant bounces to the channel’s upper boundary near $3.50. If the current setup unfolds as anticipated, the XRP/USD pair could see gains of up to 57% by the end of the year. Analyst Milkybull Crypto highlights the On-Balance Volume (OBV) as a crucial factor in the bullish shift, noting that OBV's rise indicates genuine buying interest as the price reached $2. Analyst GalaxyBTC draws parallels between XRP's current structure and the setup that led to its explosive breakout in 2017. He observes that the $2 region is acting similarly to the mid-range support reclaimed before the historic rally eight years ago. With prices stabilizing around $2 and buyers re-entering the market, there is potential for XRP to revisit the upper boundary near $3.30–$3.50, reminiscent of the expansion phase following a similar technical setup in 2017. Despite the positive outlook, XRP faces several technical challenges to confirm a sustained upward movement. As of Tuesday, the token was testing the 0.236 Fibonacci retracement level near $2.23 as resistance. A decisive breakout above this level would encounter further obstacles, including the 50-day and 200-day EMAs, which have limited XRP's upward attempts since early October. These EMAs align closely with the upper trendline of XRP’s descending channel, a pattern that has directed the price lower since the summer. If this pattern persists, XRP could return to the channel’s lower boundary, potentially dropping toward the 0.0 Fib line near $1.82 by year-end. Such a move would undermine the bullish setup, suggesting the recent bounce was temporary. This article does not offer investment advice, and readers should conduct their own research before making investment decisions.