XRP's Spot Premium Phase Indicates Strong Buying Demand

According to Cointelegraph, XRP is currently experiencing its most sustained phase of spot premium, marking a period where the spot market is trading at stronger levels compared to perpetual futures. This suggests real buying demand rather than speculative futures trading. Historically, XRP's major price peaks since 2020 have been driven by the perpetual futures market, leading to sharp price drops due to excessive speculation. However, the current spot premium indicates that actual buyers are driving the rally, pointing to a more stable price rise. Further supporting the notion of real demand, data from Glassnode reveals a consistent increase in the number of XRP addresses holding at least 10,000 tokens since late November 2024. Despite a 35% price pullback between January and April, the count of larger holders, often seen as patient or strategic investors, has continued to rise. This accumulation suggests anticipation of further gains, fueled by optimism surrounding the potential approval of a spot XRP ETF in the United States. The U.S. Securities and Exchange Commission's decision to drop its lawsuit against Ripple has also contributed to positive market sentiment. XRP's price movement is currently consolidating within a falling wedge pattern on the weekly chart, characterized by downward-sloping, converging trendlines. In technical analysis, this pattern is typically viewed as a bullish reversal signal. A confirmed breakout would require a clear move above the wedge's upper resistance near $2.52. If XRP successfully breaks this level, the pattern's measured move suggests a potential rally toward $3.78 by June, representing an estimated 70% upside from current prices. Conversely, if XRP fails to break above the $2.52 resistance, the price could pull back toward the wedge's lower trendline, with the pattern's apex near $1.81 acting as the final potential breakout point. A breakout from the $1.81 level would maintain the pattern's structure, with a potential upside target around $3 by June or July, approximately 35% above current levels. Readers are advised to conduct their own research before making investment decisions, as every trading move involves risk.