XRP has managed to sustain its upward momentum on the price charts, showing a remarkable surge of 550% since November and retesting its previous high of $3.3.
Recent market activities have seen the altcoin consolidating firmly within the price range of $2.9, its December peak, and its highest point in 2021.
Bullish Sentiment Strong for XRP
Despite some concerns surrounding significant sell-offs by large holders, the current price action signals a strong dominance of bullish sentiment in the market. Notably, the 12-hour chart RSI remains above 60, indicating robust buying momentum at present levels.
Moreover, the Directional Movement Index (DMI) suggests a slight easing in the uptrend, but the bullish stance remains intact. With these chart indicators aligning, the stage is set for further upward movement led by the bulls.
According to the Trend-based Fibonacci Extension tool, the next crucial level for the ongoing uptrend from November lies at $4.3 (1.618 Fib level). If a surge driven by FOMO pushes past $4.3, the next target could be $6.8 in the medium term.
It is worth noting that a major catalyst for such a move could be the approval of an XRP ETF. Current market sentiment, as reflected by Polymarket’s 79% odds of ETF approval, hints at the possibility of this outcome already being factored in by investors.
Favorable Market Conditions for XRP Bulls
An intriguing aspect of the XRP market dynamics is the absence of excessive speculation despite reaching a 7-year high. Funding rates have remained relatively stable, contrasting with past instances where a spike above 0.05 led to significant corrections following periods of over-speculation and excessive leveraged trading.
This lack of speculative frenzy provides a supportive environment for XRP bulls to continue their push upwards without facing immediate headwinds.
However, a breach below the 50-day moving average at $2.4 could embolden short-term sellers to take control, potentially leading to a temporary setback for the altcoin’s price trajectory.