4 reasons why XRP price could surge higher soon

Ripple’s XRP has seen impressive growth in 2024, outperforming many popular cryptocurrencies such as Bitcoin and Ethereum, which have seen more modest gains. As of this year, XRP has surged by over 52%, while Bitcoin has increased by just 11%. This strong performance signals growing investor confidence and potential future growth. There are several key factors contributing to the bullish sentiment surrounding XRP, making it a cryptocurrency to watch in the coming months. Let’s explore four key reasons why the price of XRP may explode higher soon.

The XRP Ledger (XRPL), the decentralized blockchain supporting Ripple, continues to experience significant growth, which directly impacts the price potential of XRP. According to data from DeFi Llama, the total value locked (TVL) in the XRP Ledger’s DeFi ecosystem has reached a new record high of $82 million. This increase in TVL indicates that more projects and tokens are being built on the XRPL, strengthening the network’s utility and appeal.

Several coins within the XRP Ledger ecosystem, including Sologenic and Crypto Trading Fund, have market caps that exceed $100 million, showcasing the growing adoption of the platform. Additionally, other projects such as XRP Army, PHNIX, DROP, and Ripples are gradually gaining traction and market share. As these projects continue to grow and attract more developers, the XRP Ledger’s network effect will only increase, further boosting the demand for XRP and its overall value. This expansion positions XRP for continued growth and reinforces the long-term bullish outlook for the token.

Another factor contributing to XRP’s potential price surge is the increasing trading activity of Ripple USD (RLUSD), a stablecoin pegged to the US dollar, within the XRP ecosystem. While RLUSD’s market cap remains at $72 million, its daily trading volume has been steadily increasing. In the last 24 hours, RLUSD recorded over $162 million in trading volume, signaling active usage by investors and traders. This uptick in trading activity suggests that XRP and its associated tokens are being increasingly adopted in the financial market, which could lead to higher demand for XRP.

The growth in RLUSD’s trading volume reflects not only the increasing popularity of the XRP ecosystem but also the growing liquidity and use cases within it. As more institutions and individuals use XRP for cross-border transactions and financial services, the overall demand for XRP could rise significantly, potentially pushing the price higher.

One of the most significant catalysts for XRP’s price movement this year could be the potential approval of multiple XRP Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Several asset management firms, including Canary, Bitwise, 21Shares, WisdomTree, and ProShares, have filed applications to launch spot XRP ETFs, aiming to make it easier for institutional and retail investors to gain exposure to XRP.

According to Polymarket users, there is a 78% chance that the SEC will approve these XRP ETFs in 2024. If the SEC approves these ETFs, it would provide XRP with greater legitimacy in the eyes of institutional investors and could open the door for larger-scale investments into XRP. The approval of spot ETFs would also offer easier access for U.S. investors to trade XRP, increasing its liquidity and potentially driving its price higher. With regulatory clarity on the horizon, the chances of XRP gaining wider institutional adoption seem strong, further contributing to its bullish outlook.

In addition to these fundamental factors, XRP also has solid technical indicators that suggest the potential for further price gains. One of the most bullish signals is the formation of a bullish pennant pattern on XRP’s price chart. A bullish pennant is a technical chart pattern that often indicates a continuation of the current uptrend after a period of consolidation. XRP has already broken above this pattern, signaling that the token may continue to rise in the near future.

XRP’s price is also supported by key technical levels, including the 50-week and 100-week moving averages, which have historically acted as strong support levels. The price of XRP is currently approaching key resistance levels, such as the ultimate resistance line of the Murrey Math Lines tool. The MML identifies key support and resistance levels for an asset using mathematical calculations, and the price movement indicates that XRP could potentially break through these levels and continue its upward trajectory.

Moreover, the Average Directional Index (ADX) suggests that XRP’s upward trend is gaining strength, and it could soon reach the key resistance level at $5. If XRP is able to break through this resistance, it could pave the way for a significant price increase. Technical analysis supports the notion that XRP has the potential for continued gains, especially as the broader crypto market remains volatile.

The combination of fundamental growth in the XRP Ledger network, increasing trading activity for Ripple USD (RLUSD), the potential approval of XRP ETFs, and solid technical indicators all point to a promising future for XRP. As XRP continues to build momentum, these factors could lead to a substantial price increase in the coming months, potentially causing the price to explode higher. While there are always risks in the crypto market, the growing adoption of XRP and its ecosystem, coupled with increasing institutional interest, position the token well for continued success. Investors should monitor these developments closely, as they could provide significant opportunities for gains in the near future.