XRP Price Targeting $2.50 as Market Sentiment Remains Bullish

The price of XRP is currently showing minimal movement, with just a 0.4% gain over the past 24 hours to trade at $2.21.

Despite this flat performance, market sentiment appears overwhelmingly positive, with data from Coinglass revealing that 71% of traders on Binance have opened long positions on the digital asset, compared to only 28% holding short positions.

This bullish sentiment comes as XRP’s open interest has surged to $3.75 billion, indicating growing market participation. However, this high leverage also introduces increased liquidation risk for traders, as evidenced by a recent 1000% liquidation imbalance when the price dipped to $2.13.

The price has been fluctuating within a narrow range between $2.19 and $2.25 since the beginning of the month.

While movement has been limited, technical analysts identify a symmetrical triangle pattern forming on the four-hour chart. This pattern could signal a bullish continuation pattern if the price manages to breakout from the triangle decisively.

The price is currently testing the upper trendline of this pattern at around $2.24, a level that has acted as resistance multiple times. A decisive close above this price point could pave the way for XRP to rally further and target the $2.30 resistance zone.

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One of the key factors influencing the current bullish sentiment is recent comments from Eric Trump at the Token2049 event. The former president’s son stated that crypto will eventually replace SWIFT, describing the traditional cross-border payment system as “absolutely broken” and inadequate.

These remarks have sparked speculation that Ripple’s blockchain network could potentially replace or significantly upgrade the SWIFT system for international transfers.

This isn’t an entirely new concept, as Ripple CEO Brad Garlinghouse made similar suggestions earlier this year about how cryptocurrency could modernize the SWIFT infrastructure.

SWIFT currently processes approximately $5 trillion in transactions daily, which amounts to roughly $1.25 quadrillion annually. If Ripple were to capture even a fraction of this market share, it could potentially drive significant value to the XRP token.

The possibility of such adoption presents a major bullish case for XRP holders, especially considering the asset has shown strength in recent weeks following years of regulatory uncertainty.

For XRP to breakout of the triangle pattern and chart a continuation pattern, technical indicators suggest the Relative Strength Index (RSI) will need to climb above 50.

Currently, the RSI is holding at 46, indicating that bearish momentum still has a slight edge in the shorter timeframe.

If XRP can successfully punch through the $2.30 barrier, technical analysis suggests a potential 11% rally toward the $2.50 level. Conversely, a drop below the $2.15 support could invalidate the bullish outlook and might trigger a cascade of liquidations, potentially pushing the price down to test the $2.00 psychological level.

On the hourly chart, XRP has now broken above a bearish trend line with resistance being encountered at the $2.2350 price point. The price is still trading below the 100-hourly Simple Moving Average, which is providing support at the $2.20 level and resistance at $2.25.

The MACD indicator is showing increasing strength in the bullish zone, while the hourly RSI has moved above the 50 level, signaling a shift in momentum to favor the bulls over the bears.

In summary, major support levels to watch for are at $2.20 and $2.12, while resistance is anticipated at $2.25 and $2.30. A clean breakout above the $2.35 price point could set the stage for a measured move toward the $2.42 or even $2.50 price targets in the short-term.

As XRP traders remain optimistic, they are keenly following the potential breakout from the current consolidation pattern, with the majority of traders positioning themselves for an upward move based on both technical patterns and fundamental developments.