3 reasons why Ripple Labs’ XRP is ripe for a big upside move

XRP, the native cryptocurrency of the decentralized blockchain created by Ripple Labs, remains in a consolidation phase, with top cryptocurrencies such as Solana, Polkadot and Cardano falling by double digits.

Ripple (XRP) was trading at $2.39 at last check on Saturday; this was several points below its 2024 high. Still, key fundamental and technical catalysts could further strengthen this situation over the next few months.

Source: CoinGecko XRP whales are buying the dip

Whale accumulation is one of the most popular bullish catalysts for cryptocurrencies because these investors are believed to be more knowledgeable. Data shows that XRP whales continue to hoard the cryptocurrency as the mood in the crypto industry worsens.

According to popular crypto investor Ali Martinez, citing Santiment data, these whales purchased 1 billion XRP tokens in the last 48 hours. This is an indication that they are optimistic about cryptocurrency.

Ripple ETF approval awaited

Meanwhile, Polymarket investors are optimistic that the Securities and Exchange Commission will approve spot XRP exchange-traded funds, or ETFs, in 2025. A small survey of just $5,000 in assets shows the probability to be 68%. Another $30,000 survey reveals a 51% chance of Ripple ETF being approved by July 31.

These hopes remained high after Donald Trump won the election and promised to be a more crypto-friendly president. He nominated Paul Atkins as the next SEC chairman and began creating the AI ​​and crypto council.

Crypto ETFs have become very popular among investors. ProShares Bitcoin ETF has over $2.3 billion in assets, while spot Bitcoin ETFs have attracted over $36 billion in inflows. Bitcoin ETFs have assets of over $107 billion, while Ethereums have $11.6 billion.

Aside from XRP, crypto investors are also investing in the potential approval of Solana, Hedera Hashgraph, and Chainlink ETFs.

XRP chart with XRP price bullish techniques | Source: crypto.news

Ripple has also formed strong technicals that could push its price significantly higher in the next few weeks.

The daily chart shows XRP forming a bullish pennant formation, which is one of the most popular continuation signals in trading. The triangle pattern has been forming since December, with the bottom of the flag at $0.4913. An uptrend usually occurs at the intersection of two triangle lines.

While XRP remains above the 50-day moving average, the MVRV indicator has dropped to 2.5, a sign that it is undervalued. Therefore, the first level to watch will be the overshoot of the Murrey Math Lines, followed by the 2024 high of $2.90, and then the psychological level of $3.