XRP Emerges as the Top Conviction Altcoin Trade, Targeting a Rally Toward $2.80

XRP/USD has emerged as the top conviction altcoin trade according to a new report from 10x Research, citing improving market structure

XRP/USD has emerged as the top conviction altcoin trade according to 10x Research in a new report, citing improving market structure, technical breakouts and upcoming catalysts including the launch of XRP futures on CME Group (NASDAQ:CME) Group.

What Happened: While Bitcoin (BTC/USD) remains capped at the $94,000-$95,000 resistance zone, attention is beginning to shift towards select altcoins, especially with a 50 basis-point drop in Bitcoin dominance setting the stage for a broader rotation out of BTC and into the tactical altcoin outperformance indicator, according to 10x Research.

Among these altcoins, XRP is presenting the most favorable setup, having recently broken out of its downtrend and showing a 600% surge in network payment volume and transaction counts over a four-day period, with 838 million XRP being transferred on April 23 alone.

This development coincides with Coinbase (NASDAQ:COIN) listing XRP futures contracts on its U.S. derivatives exchange, and CME Group announcing the launch of XRP futures on May 19, pending regulatory approval.

Why It Matters: Despite Bitcoin’s recent rebound, funding rates have remained near zero even as Open Interest has increased, indicating that traders remain skeptical and there is no excessive leverage.

However, liquidity flows are materially improving, which bodes well for both Bitcoin and select altcoins in the coming days and weeks.

According to 10x Research, XRP is expected to continue moving higher from the $2.27 level, with a target rally toward $2.80 being supported by technical strength and increasing institutional interest.

The firm also notes that Korean retail traders, typically known for their participation in large XRP rallies, are likely to rejoin the market as momentum builds.

suggesting that a 50 bps drop in BTC Dom would shift the tactical indicator.

"With Coinbase already listing its own micro BTC and ETH futures and its new U.S. derivatives exchange, and given Coinbase’s role in facilitating large-scale crypto transactions, it is clear that institutions are becoming increasingly interested in the crypto market. This interest is also being driven by the upcoming launch of CME Group’s XRP futures contract on May 19, pending regulatory approval," the report states.

What’s Next: 10x Research views the current market environment as an excellent window to accumulate XRP ahead of the CME futures launch, highlighting that multiple catalysts are now converging in its favor.

"As the iHolders Index continues to decline and broader market volatility persists, we believe that a tactical shift from U.S. equities into select cryptocurrencies presents an interesting opportunity in this rapidly evolving market landscape," the firm concludes.

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