XRP has the potential to increase by 56% to a new ATH of $4.8

In a recent post on the X platform, renowned analyst Ali Martinez shared an optimistic forecast for the value of XRP, based on technical analysis. He believes that if the coin can maintain its upward momentum and close above the key price level this week, there is a chance that XRP will reach the milestone of $4.8 – the highest level ever.

Parallel Channels and Strong Growth Signals

Ali cited the parallel channel model to explain the next direction of XRP. This model forms when the price of an asset moves within a range between two parallel trend lines. The upper line of this channel is usually a strong resistance level, while the lower line is support. A breakout of either of these thresholds can forecast a new, stronger trend.

According to the analysis, there are three types of parallel channels, depending on the slope of the trend lines. When the trend lines slope upwards, the pattern is called a "rising channel"; conversely, when sloping downwards, it is a "falling channel." However, the most common type of parallel channel in the context of XRP today is the sideways pattern, which indicates market consolidation before a strong breakout.

Looking at the chart shared by Ali, the price of XRP is currently close to touching the upper resistance line of the parallel channel. This indicates that this coin has seen an impressive growth recently, and if it continues to maintain its momentum, it could very well retest the $3.3 level, an old resistance threshold. Especially, if XRP can close above $3 this week, it will open up the possibility for a strong breakout ahead.

"A weekly close above $3 could be the key for XRP to reach $4.8, setting a new record in value."

If this scenario occurs, XRP will record a growth of 56% compared to the current price, something that investors and analysts are very hopeful for.

The participation of whales

One factor that cannot be overlooked in the recent growth of XRP is the strong participation of "whales" – investors with large asset volumes.

XRP is currently trading at $3.15, recording an increase of nearly 8% in the past 24 hours and over 29% in the past week. The trading volume in the last 24 hours reached $9.7 billion, an impressive figure. Analysts suggest that this upward trend is largely due to the strong participation of large investors.

XRP Price Chart | Source: TradingViewAli reported that "whales" have purchased a total of 2.2 billion XRP in the past two weeks. At the current price, this amount of XRP is valued at over 6.9 billion dollars.

Recently, XRP has maintained a stable upward trend, surpassing the $3 mark. Strong buying pressure seems to reflect the increasing interest of investors in this currency.

Several large transactions have been recorded and monitored by blockchain surveillance services. Whale Alert reported that 25.5 million XRP, worth approximately $73.6 million, was transferred to the Coinbase exchange. At that time, XRP was trading at $2.92. Additionally, on-chain data also showed that 33 million XRP was transferred from the Upbit exchange to an unidentified wallet, and another 40 million XRP was transferred between unidentified addresses.

According to analysis from Galaxy, XRP is nearing an important price threshold. This cryptocurrency is about to enter a "price discovery" phase, the phase when the asset surpasses all previous price levels. The last time XRP experienced this was in 2017.

Opportunities from futures contracts and ETF funds

Alongside the strong participation of whales, another important factor creating a significant wave for XRP is the substantial increase in the futures contract volume of this currency. According to data from CoinGlass, the open interest volume (OPI) of XRP has reached 9.25 billion dollars, an increase of 15% in the past 24 hours. This indicates that investors are increasing their use of leverage, raising expectations for a strong breakout soon. The total open interest volume corresponds to approximately 2.93 billion XRP, indicating a large market participation.

Another important development is the SEC's approval of the ProShares Ultra XRP ETF under the ticker UXPR. This fund will provide investment opportunities for those looking to leverage daily performance that is double the price of XRP, opening a new path for investors to access this cryptocurrency. With the participation of institutional investors and the potential to attract significant capital inflows, this decision could create a strong buying wave, driving significant growth for XRP in the future.

Annie