XRP Price News: Ripple Volumes Explode By 200% – Next Stop $5?

XRP (XRP) has gone up by more than 4% in the past 24 hours as trading volumes have jumped by 200% during this period.

The token has once neared the psychological $3 threshold that has acted as both support and resistance during this cycle, which explains why trading volumes have increased so much.

Ahead of today’s spike, trading volumes in the futures market had been dropping. In the traditional markets, the drop was quite pronounced as only 820 contracts were traded last Friday compared to a peak of 7,898 on August 26 for a 90% drop.

XRP Open Interest – Source: CoinGlass

Similarly, open interest (OI) across crypto exchanges experienced a strong drop as well, retreating from an all-time high of $11 billion on July 21 to $7.6 billion on Sunday for a 31% decline.

Ripple USD Launches in Africa and Market Cap Rises to $700M

Other top altcoins are also experiencing strong boosts in the past 24 hours, led by Solana (SOL), which has booked a 5.2% gain during this period and whose trading volumes have also jumped by 160%.

There is no specific catalyst that explains this spike. However, traders could be positioning for the release of inflation data this week. If prices retreat, that could result in a significant upward move for crypto as it will confirm that the U.S. Federal Reserve will move to cut rates next week.

An overwhelming majority of traders surveyed by FedWatch believe that the institution will cut rates by 25 basis points during the September 17 FOMC meeting, supporting a bullish outlook for cryptos as a whole.

Meanwhile, last week Ripple revealed the beginning of the next chapter for its native stablecoin – Ripple USD (RLUSD) – as the token will now be available to trade in African markets through partnerships with top exchanges including Chipper Cash and VALR.

Ripple USD (RLUSD) Market Cap – Source: CoinMarketCap

The market cap of RLUSD has been expanding rapidly lately. In the last 4 months, it has more than doubled, moving from $300 million to $700 million. As Ripple continues to make its way in the Middle East and Africa, the demand for this stable asset could result in higher transaction volumes within the XRP Ledger that should increase the demand for XRP in the near term.

Descending Triangle Breakout Could Push XRP to $5

We have been tracking a key technical setup called a descending triangle in previous XRP price predictions that could result in a major boost if a bullish breakout is confirmed.

XRP/USD Daily Chart (Coinbase) – Source: TradingView

This pattern results in significant price compression and is usually interpreted as a consolidation move that occurs after a strong rally.

The $2.7 support has acted as a bouncing pad for XRP in previous instances and that makes it the key support to watch at the time. If we get a bullish breakout above $3 this week, that could mark the beginning of the token’s next leg up.

As we emphasized the last time we wrote about this token, this could result in a first jump to $3.4 and then to an even more pronounced rally to $5. Rate cuts typically favor a bullish outlook for cryptos as investors start chasing yields in riskier areas of the market.

Hence, the current conditions have set the perfect stage for the continuation of altcoin season and it could now be XRP’s turn to make a new all-time high, following the footsteps of Ethereum (ETH) and BNB Coin (BNB)