The XRP price has consolidated this week as the recent bullish rally faded. Ripple was trading at $3.10, a few points below its highest point this year. It has surged by over 515% from its lowest level in 2024, and numerous catalysts may push it much higher soon.
XRP price has formed another bullish pennant
The recent Ripple breakout happened after the coin spent almost two months forming a bullish pennant pattern on the daily chart. This pattern has two parts: a flag pole and a symmetrical triangle pattern.
The pattern worked out well and the coin jumped to the year-to-date high of $3.40. Now, Ripple has slowly formed another bullish pennant pattern, which is shown in green below. The recent consolidation is part of the formation of the pennant pattern.
Ripple has remained above the 50-day moving average, a sign that the bullish trend is intact. It has also moved above the Ichimoku cloud indicator. Therefore, the coin will likely have a strong bullish breakout, with the next important level to watch being at $5. A move to $10 cannot be ruled after that.
Ripple coin has catalysts ahead
The XRP price has numerous catalysts that may push its price higher in the long term. First, according to Polymarket, the odds that the SEC will approve a spot Ripple ETF have jumped to 70% this year. That is a sign that the coin will receive more new money from institutional investors this year. Several companies, including CoinShares and WisdomTree have filed for a spot XRP ETF.
Second, there is a possibility that Ripple Labs will get legal reprieve from the Securities and Exchange Commission (SEC). The SEC, under Gary Gensler, sued Ripple Labs for selling XRP, which it termed as an unregistered security. Ripple largely won the lawsuit, which the SEC has appealed.
Therefore, there is a likelihood that the new SEC will move away from this suit, a move that would benefit Ripple price.
Further, Ripple USD (RLUSD) has become a highly popular stablecoin. While its market cap is just $72 million, its daily trading volume is often $165 million, making it more popular than other meme coins like PayPal’s PYUSD and Justin Sun’s USDD.
Ripple’s futures open interest has remained elevated, a sign of increased demand for the coin, which may push it higher.
Still, a key risk that XRP price faces is the ongoing revolt from the crypto community after it emerged that Ripple Labs was actively lobbying against a Strategic Bitcoin Reserve.
