XRP is gaining ground after surpassing the $3.05 mark, with $3.60 the main target. The expectation is strengthened by growing prospects of a successful approval of an exchange-traded fund (ETF).
Confidence in an XRP ETF is stronger than it was at any point this year based on prediction markets. According to Polymarket data, the XRP ETF has a 92% probability of approval by 2025.
This is an increase of 21% over previous figures and the indication of an increase in investor confidence. The prediction has helped to bring on board a new form of buying activity. Traders believe that approval is an open door to institutional capital inflows.
This ETF would also make XRP accessible to a wider audience than the existing crypto exchanges. This further supports high demand in the long term.
Source: Polymarket
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The coin’s breakout has been highlighted by market analysts. According to popular analyst Ali Martinez, the coin has overcome the resistance barrier of $3.05. This facilitates two scenarios, according to his analysis.
It may see a resurgence to $3.60, or there may be a reverse to $2.90 before the uptrend resumes. His forecast points out that the primary target is $3.60, no matter the pullback in the short run. The breakout also marks weeks of selling pressure around a trendline, which has now been broken conclusively.
Source: X
The bullish view gets further reinforcement by technical signals. According to the TradingView chart, the area of major Fibonacci retracement levels is in the range of $2.77 and $2.82, providing some buffer in case the surge stalls.
Buyers have already protected these levels during previous sessions. The VWAP level of approximately $3.05 means that the traders are in agreement that this price level is fair value.
Spot volume remains at 10.73 million XRP. This suggests that there is continued interest in the token since it is above the breakout price.
Source: TradingView
The main indicator of optimism in the XRP development can be seen in derivatives markets. Coinglass data shows that the futures volume is up 7.40% to $6.54 billion.
There was also an increase in open interest of 4.35% to be at $8.79 billion. This is an indication of increased participation by institutions and leveraged traders.
This combination indicates that investors are expecting more volatility, but towards the upside. Increased derivatives trading usually leads to dramatic shifts in price. Currently, it coincides with ETF optimism and technical strength.
Source: Coinglass
The potential of ETF approvals for various tokens has fueled bullish speculation. This momentum is emphasized by the price action. Since reaching as low as $2.70, XRP has started a gradual recovery to levels of almost $3.09.
The breakout above $3.05 suggests the beginning of an upward movement. But it has short-term goals of $3.20 and $3.45 before attaining the main target of $3.60.
Currently, the market structure, increasing trading volume, and ETF optimism have created positive momentum around the coin. These are the factors that could move its price upward.
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