XRP price pattern hints at the next target as open interest hits ATH
XRP price jumped on Monday, July 21, continuing a trend that started on June 22 when it bottomed at $1.9121.
Ripple (XRP) jumped to $3.55, up by over 120% from its lowest point in April, and technicals point to more gains later this year.
The token’s rally accelerated after Donald Trump signed the GENIUS Act into law on Friday. This law benefits XRP because Ripple Labs launched RLUSD stablecoin in December last year.
RLUS meets all the rules set in the GENIUS Act and has continued to gain market share in the industry. Its market capitalization has jumped to over $520 million as it continues to close in on PayPal’s PYUSD.Â
In a statement last week, a stablecoin analysis company noted that RLUSD was the safest stablecoin, citing its transparency and the fact that its assets are stored with Bank of New York Mellon.
XRP price has also surged as demand from retail and institutional investors jump. Data shows that the Teucrium 2x XRP ETF has continued to add assets three months after its launch. Its assets under management are approaching the key milestone at $500 million.
The ongoing surge in XXRP assets is a sign that Wall Street investors are receptive to altcoin funds. As such, it is likely that inflows into spot XRP ETFs will be robust when approved by the Securities and Exchange Commision.
The same trend is happening in the futures market, where XRP’s futures open interest jumped to a record high of $10.8 billion. That is a big increase from the year-to-date low of below $500 million.
XRP price technical analysis
The daily chart shows that the Ripple price has staged a strong comeback this year. It moved from a low of $1.6100 in April to $3.54 today. It has remained above the 50-day and 200-day Exponential Moving Averages.
The coin has formed a cup-and-handle pattern, with its lower side at $1.61 and its upper side at $3.40. This gives it a depth of about 52%.
Measuring the same distance from the cup’s upper side gives the target price at $5.2, much higher than the current $3.5. A drop below the support at $3 will invalidate the bullish view.
