XRP chart pattern, open interest point to a surge

Ripple faces numerous fundamental and technical headwinds that could push its price significantly higher in the ongoing bull cycle.

Ripple (XRP), the third-largest cryptocurrency, was trading at $2.45 on Monday as Congress met to certify Donald Trump’s presidential victory. The token is up 375% from its September low and is now several points below last year’s high of $2.90.

Trump’s confirmation marks one of the final steps before his inauguration on January 20. The president-elect has promised to make the United States a major player in the crypto industry by implementing friendly regulations.

One thing management can do is get the Securities and Exchange Commission to approve spot exchange-traded funds. Latest data shows that spot Bitcoin and Ethereum ETFs have accumulated assets of over $111 billion and $13 billion, respectively.

Polymarket users believe the Ripple ETF could be approved later this year. According to a small survey of $2,700 in assets, there is a 71% chance that an XRP-based ETF will be approved by the end of the year. This scenario is plausible, considering that XRP is one of the oldest cryptocurrencies and ranks third in terms of market cap, with a value of over $140 billion.

Trump’s upcoming administration could also benefit Ripple due to expected changes at the SEC. Current SEC Chairman Gary Gensler, known for his anti-crypto stance, is expected to resign and possibly be replaced by Paul Atkins.

Atkins, a veteran regulator, has previously expressed support for digital assets and may choose to drop a few of the agency’s lawsuits. Trump also promised to deregulate key industries, including cryptocurrency.

Meanwhile, XRP’s open interest in the futures market continued to increase, reaching $192 million, its highest level since December 9.

XRP futures open interest | Source: CoinGlass XRP price has formed a very bullish XRP coin chart | Source: crypto.news

The daily chart shows that XRP is forming a strong bullish pattern, indicating a potential upside in the coming weeks.

The token developed a bullish pennant chart pattern with a flagpole starting at $0.49 and extending to $1.8958. The price is currently consolidating within a triangle formation approaching an important confluence.

XRP remains comfortably above the 50-day and 200-day moving averages, which signaled bullish signals on November 12.

Given these indicators, XRP is likely to continue rising with the next key resistance level at $2.90 (the swing high in 2024). A break above this level could open the door to a move towards the $5 psychological target.