XRP Price Prediction: Why is XRP Going Up Today?
XRP Price Prediction: What Gensler’s Exit Means for Investors
Speculation over Gary Gensler's possible resignation as SEC chair has stirred optimism within the crypto community regarding XRP's price outlook.
XRP Long-Term Triangle Breakout Since 2021
The XRP price recently surged past the $0.80 mark, reaching its highest level since July. This significant movement marks a breakout from a long-standing symmetrical triangle pattern that had been in play since 2021, as seen on the weekly chart.
XRP Parabolic Rise on the Daily Chart
The daily chart reveals that XRP's price rally has turned parabolic. This sharp upward trend began after XRP broke out of a descending wedge pattern, pushing the price above the $0.63 resistance level that had held firm since July. This breakout set the stage for a rapid ascent.
XRP Key Resistance and Support Levels
Looking ahead, XRP faces major resistance at $1.00, a psychological barrier, and at $1.96, which was its peak in April 2021. On the downside, potential support levels are around $0.65 and $0.50, indicating that the market could be gearing up for an impressive rally, possibly pushing XRP above $1 before the end of 2024.
XRP Increase in Open Interest Reflects Market Speculation
XRP’s recent upward momentum has been accompanied by a notable spike in Open Interest, which currently stands at approximately $1.13 billion. This increase suggests rising market speculation and leveraged trading, contributing to the current bullish trend.
XRP’s NVT Ratio: Tracking Market Trends Over Time
Historical Fluctuations in XRP’s NVT Ratio
XRP’s Network Value to Transactions (NVT) ratio has experienced notable changes over the past few years. From 2020 through early 2021, the NVT ratio hovered between 200 and 600, indicating a relatively balanced market environment.
Speculative Surge in Mid-2021 to Early 2022
During the period from mid-2021 to early 2022, the NVT ratio soared past 1,000. This spike pointed to phases of overvaluation largely fueled by market speculation, suggesting that XRP's price was potentially outpacing its actual on-chain activity.
Recent Surge Reflects Market Discrepancy
Most recently, XRP’s NVT ratio climbed to approximately 1,800, marking one of the highest levels recorded. This significant jump hints at a potential disconnect between the cryptocurrency’s market cap and the volume of on-chain transactions, signaling possible overvaluation in the current market.
