3 reasons why Ripple Labs’ XRP is poised for a significant upside move

XRP, the cryptocurrency associated with Ripple Labs, has been in a consolidation phase, even as other leading assets like Solana, Polkadot, and Cardano experience significant declines. However, there are three key reasons why XRP is positioned for a potential big upside move in the coming months:

Whale Accumulation

What’s Happening? XRP whales, large investors known for their market influence, have been accumulating significant amounts of the token, even as market sentiment has been more cautious. According to crypto investor Ali Martinez, data from Santiment revealed that XRP whales bought 1 billion XRP tokens in just 48 hours.

Why It’s Bullish: Whales are often seen as more sophisticated investors who have access to market insights that may not be immediately available to the general public. Their continued accumulation indicates strong belief in XRP’s long-term potential, and their actions can often signal the potential for a price surge.

Ripple ETF Approval Hopes

What’s Happening? There’s growing optimism in the market that the U.S. Securities and Exchange Commission (SEC) could approve a spot XRP exchange-traded fund (ETF) in 2025. Polls from Polymarket traders suggest that there’s a 68% chance of approval in the coming year, with another poll indicating a 51% likelihood of approval by mid-2025.

Why It’s Bullish: The approval of a spot XRP ETF would greatly enhance XRP’s accessibility for institutional investors, significantly increasing its market demand. The trend of Bitcoin and Ethereum ETFs has demonstrated the high demand for such products, which would likely extend to XRP, potentially driving its price up. Additionally, with the crypto-friendly policies expected from the U.S. government under President Donald Trump’s leadership, the chances of ETF approval may be further bolstered.

Bullish Technical Indicators

What’s Happening? XRP’s chart is showing strong technical patterns that suggest it could be primed for a breakout. The cryptocurrency has been forming a bullish pennant pattern since December, a continuation pattern that typically signals upward price movement when the two lines of the triangle converge. XRP has also been holding above the 50-day moving average, and the MVRV (Market-Value-to-Realized-Value) indicator has dropped to 2.5, suggesting that XRP is undervalued.

Why It’s Bullish: The bullish pennant formation and strong technical indicators suggest that XRP is well-positioned for a price surge. If XRP breaks out of the pennant pattern, it could quickly move towards its next resistance levels, such as the 2024 high of $2.90 and the psychological $3 level.

With XRP whales showing continued optimism, growing hopes for a spot XRP ETF approval, and strong technical indicators, XRP is positioned to make a significant move in the coming months. If these factors play out, XRP could see a substantial upside, potentially reaching new price milestones and reinforcing its place as a leading cryptocurrency in the market.