Top 4 Reasons XRP Price is on the Verge of a Bullish Breakout

XRP price has formed a series of lower lows and lower highs in the past few months as it crashed from the all-time high of $3.67 in July to the current $1.8717. Still, some key technical and fundamental point to a potential rebound in the coming months.

XRP Price Technical Analysis Suggests a Rebound is Possible

Technical analysis, particularly on the daily chart, suggests that the XRP price may be on the verge of a strong bullish breakout, as it has formed several contrarian patterns.

One of these patterns is the triple bottom, which occurs at the key support level of $1.7652, its lowest point in October, November, and this month.

The token has also formed a bullish divergence pattern, which happens when an oscillator is moving upwards as an asset’s price rises.

In this case, the MACD indicator has begun to move upward. Similarly, the Awesome Oscillator is rising gradually and is slowly approaching the zero line.

Additionally, the token has formed a falling wedge pattern, which consists of two converging trendlines that are descending. A rebound normally happens when the two lines are nearing their confluence.

A closer look also reveals that the XRP price has formed an inverted head-and-shoulders pattern, with its neckline coinciding with the upper side of the falling wedge.

Therefore, these patterns suggest that the token has more upside if it remains above the key support at $1.7575. A move below that level will invalidate the bullish outlook and point to more downside, potentially to the psychological level at $1.

XRP ETF Inflows Point to Accumulation

The other main reason why the Ripple price may surge soon is that an accumulation is underway in the United States.

Data compiled by SoSoValue shows that XRP ETF inflows have been gaining momentum in the past few months.

These funds have never had a day without outflows since their launch on November 14 this year. The funds added over $8.1 million in inflows on Tuesday, bringing the cumulative inflows to $1.1 billion and their total assets to $1.25 billion.

These funds are also highly active, with the total value traded soaring to $12.4 million on a single day.

The Canary XRP ETF holds the largest market share, with over $331 million in assets, while the recently launched 21Shares XRP ETF follows closely with over $255 million in assets. The other top XRP ETFs are offered by companies such as Bitwise, Grayscale, and Franklin.

Ripple USD Stablecoin Growth is Accelerating

XRP price may also rebound due to the growing market share in the stablecoin industry, where Ripple USD (RLUSD) is gaining market share.

Data compiled by Artemis shows that the stablecoin supply in the network has increased by nearly 10% over the past 30 days, reaching over $1.4 billion.

This growth will benefit the XRP price because of its impact on the XRP Ledger. Data shows that the amount of XRP on the ledger has jumped to nearly $400 million

A surge in XRPL activity indicates that the network will likely increase the XRP burn rate in the coming months.

Ripple Banking License Approval

The other important catalyst for the XRP price is that the Office of the Comptroller of the Currency (OCC) recently awarded Ripple Labs a banking charter. This makes it one of the few companies in the crypto industry to have a bank charter.

The implication is that it will now expand its services to include custody and other banking solutions. As such, the management will likely find a way to leverage the XRP technology into its operations.

For example, Ripple may move the RLUSD stablecoin funds to its bank. It may also move some of the companies it has acquired, such as GTreasury and Hidden Road, to the bank, leveraging the XRP Ledger platform. All these strategies are likely to boost the value of XRP over time.