XRP price trades at $3.23 today, August 14, with a 0.53% drop. It has moved above a bullish pennant, a sign that the rally might extend until it reaches $6. Supporting this bullish thesis are whales and the attention that Teucrium’s XXRP ETF is getting.
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From July 6 to July 18, bulls had total control over the XRP price. In less than two weeks, the price had jumped by more than 65%. If XRP can rally the same way and go above the lower highs, where the resistance line now lies, it might surge higher. What this means is that its breakout rally might be the same 65% that it made in July. This rally may begin as soon as the price moves above $3.66.
A 66% increase from where the price is now means that XRP might get to $6. Achieving this target will largely depend on whether there is enough momentum from bullish traders. Currently, this appears to be the case by looking at the RSI.
Even when the entire market is in “greed,” XRP’s RSI is not flashing any warning sign. That happens when it is overbought because of a buying frenzy. With its current value of 57, it means that the RSI will have to move to as high as 80 before there is any real threat of a reversal.
There is also the MACD, which is also favoring bulls. Even after dropping in late July, it has remained positive. What this means is that the XRP price might be only taking a breather. It will likely resume its rally when bulls share the belief that there is the possibility of more gains.
XRP/USDT: 1-day Chart (Source: TradingView)This analysis is further strengthened by a recent report by CoinGape. It reported that XRP has formed a golden cross with the MVRV. In the past, when this happened, gains followed.
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Whales are not relenting when it comes to accumulating XRP at its current price. Analyst Ali Charts has observed that just like retail, they are also in a buying frenzy. This is considering the fact that in just three days, they have bought over 320 million XRP.
Whales are not usually swayed by emotions. What this means is that there is likely an underlying reason why they are buying. That reason could be the XRP-focused treasury announced by Vivopower and CryptoCom.
The XXRP ETF by Teucrium is also getting some interest. So far, it has more than $462 million in net assets. That shows that besides those buying XRP in the spot market, there are those pursuing indirect exposure with ETFs.
Therefore, as long as whales and institutions remain on board, getting to $6 will be a walk in the park for the XRP price. Interestingly, the technical outlook is favoring bullish traders.
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XRP price can reach $6 if it breaks out of a bullish pennant formation.
Whales are likely buying XRP because of a bullish technical outlook and a potential end to the Ripple vs. SEC lawsuit.
The net assets attained by the Teucrium XRP ETF so far suggest that institutions are likely buying the XRP token.
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