Over the past several days, trading volumes have consistently stayed at or above average levels, driven by a bullish breakout that pushed the price above the 21-day exponential moving average (EMA). This momentum was further supported by a ‘golden cross’ formation involving the 50-day EMA, signaling potential continued strength in the market.
Among the leading cryptocurrencies, XRP stands out as the best-performing asset in the top five, with year-to-date gains reaching 12.44%. Not far behind, Bitcoin (BTC) has been making significant strides as it moves closer to its all-time high, maintaining strong investor interest and market momentum.
RLUSD Market Gains Momentum
Ripple continues to advance its strategy to broaden the usage and acceptance of its native stablecoin, Ripple USD (RLUSD). Just recently, BitMEX added RLUSD to its platform, enabling traders to access spot and margin trading, which is starting today.
Since its launch, the stablecoin’s market capitalization has grown steadily, climbing from about $50 million initially to $317 million currently, according to TradingView Data. On the price and demand front, while open interest in XRP futures has increased lately, the token’s price has yet to show a noticeable reaction to the uptick in trading activity.
Formation of a Bullish Flag Pattern on XRP
Since XRP hit a peak of $3.40 per token, its price movement has been relatively subdued, forming a bullish flag pattern. This pattern usually appears when the market takes a pause after a strong upward trend, suggesting a possible continuation of the existing momentum. If XRP manages to break above the $3 resistance level, this would confirm the bullish pattern and could trigger a renewed upward rally similar to the one observed between November and December.
Potential Price Surge and Market Impact
The bullish flag pattern is important because the length of the prior rise—known as the flagpole—can be used to estimate the potential size of the next price move. XRP’s weekly chart shows a 577% increase from October to January. If this pattern plays out again after a confirmed breakout, XRP could potentially climb to around $12 within three to six months.
XRP Set to Surpass Ethereum
If this happens, XRP’s total market value could climb close to $850 billion. That would push it past Ethereum, making XRP the second-largest cryptocurrency, although it would still remain quite far behind Bitcoin.
This type of price movement hasn’t appeared on the weekly charts for either BTC or ETH. So, for now, XRP seems to have a unique opportunity for growth. This surge could be driven by Ripple’s recent legal wins, along with other positive factors such as the possible approval of a spot ETF for XRP or wider acceptance of its stablecoin, especially if it gains more listings on major exchanges like Binance or Coinbase.
Final Thoughts
XRP is showing strong signs of continued growth, supported by healthy trading volumes, positive technical indicators, and strategic advances like the expanding adoption of its stablecoin RLUSD.
The formation of a bullish flag pattern points to the potential for a significant price rally, possibly pushing XRP past Ethereum to become the second-largest cryptocurrency. Backed by Ripple’s recent legal successes and promising developments such as ETF approval and exchange listings, XRP appears well-positioned for substantial gains in the coming months.
