XRP Price Forecast: Can XRP Rise to $12 as Its Weekly Price Chart Suggests?

Trading volumes have been near or above the average in the past few days after a bullish breakout above the 21-day exponential moving average (EMA) and a ‘golden cross’ with the 50-day EMA.

However, XRP is still the best-performing asset in the top 5 with year-to-date gains of 12.44%, followed at a close distance by BTC amid the top crypto’s latest push near its all-time high.

Market Seems to Be Ignoring All Bullish News

Ripple has kept moving forward with its plan of expanding the reach and adoption of its native stablecoin – Ripple USD (RLUSD).

Recently, the token was listed by BitMEX and will be available to users for spot and margin trading starting today. The stablecoin’s market cap has been steadily surging from around $50 million once it was launched to $317 million as of today, as per data from CoinMarketCap.

Meanwhile, when it comes to its price action and demand, open interest for XRP futures has been rising recently but the price has not responded yet to this higher trading activity.

Looking at the OI chart, we can see that OI reached a high of $5.5 billion recently at a price of $2.58 per token. Comparatively, back in early February when OI sat at $5.8 billion, the price was nearly 10% higher at $2.8.

This muted price action and response to higher interest from futures traders could be the result of a period of accumulation.

During this stage, bulls accumulate a specific asset and take advantage of mild price declines to keep buying.

Can XRP Dethrone ETH?

This behavior is consistent with a technical pattern that has been forming since XRP hit its local high of $3.4 per token.

A bullish flag pattern has emerged as a result of this muted price action and could anticipate a significant spike in the price of Ripple’s native asset if a bullish breakout occurs.

Flags are continuation patterns. They pop up as the market takes a breather after a strong and well-defined price trend – in this case, an uptrend.

A move above the $3 level will confirm the pattern’s bullish bias and could result in a resumption of XRP’s November-December uptrend.

The wildest side of this prediction is that flag patterns could lead to significant price surges and the size of the flag’s pole is often used as a reference to determine how high the price may go.

In this case, XRP’s weekly chart shows that the price rose by 577% from October to January. If a similar rally occurs, provided that the flag pattern is confirmed, this means that XRP could rise to at least $12 around three to six months after.

This means that XRP’s market cap would rise to nearly $850 billion. It would surpass Ethereum as the second-biggest cryptocurrency but will still be at a fairly high distance from BTC.

This price pattern has not shown up in BTC or ETH’s weekly chart. Hence, this kind of upside potential is exclusive to XRP at the moment and could result from Ripple’s latest legal victories and other tailwinds like the potential approval of a spot ETF for the token or mass adoption of its stablecoin as a result of further listings in top centralized exchanges like Binance or Coinbase.