XRP Price Prediction: Can XRP Rise to $9? ETF Hype Causes Major Breakout

XRP (XRP) has gone up by 5% in the past 24 hours following news that the first exchange-traded fund (ETF) linked to the native asset of Ripple will hit the trading floor on July 18.

The ProShares Ultra XRP ETF (UXRP) is designed to deliver two times the daily performance of this token through the use of derivatives like cash-settled futures contracts.

The ETF will not hold XRP directly. However, it will give both retail and institutional investors a regulated vehicle through which they can gain leveraged exposure to this asset through the traditional stock market.

The fund will charge an annual expense ratio of 0.95% for managing the portfolio and it will mimic the performance of the Bloomberg XRP Index.

Although a spot ETF for XRP has not yet been approved, the market has greeted the launch of this vehicle as it is an early win for an asset that just a year ago was at the center of a legal crusade between the U.S. Securities and Exchange Commission (SEC) and crypto companies like Ripple.

XRP Volumes Skyrocket Amid ETF Hype

Once again, short liquidations have skyrocketed as a result of crypto’s most recent uptick. Bitcoin (BTC) has reached a new all-time high and Ethereum (ETH) has now surpassed the $3,000 mark.

$600 million worth of shorts were wiped out in the past 24 hours alone. Bitcoin accounted for roughly 80% of that total as the price ripped through $120,000 for the first time in its history.

XRP Futures Volume – Source: CoinGlass

XRP trading volumes have surged by 73% in the past 24 hours after the news and currently account for more than 6% of the token’s circulating supply.

Volumes recently hit a peak on July 11 when they rose near $16 billion. On that same day, $35 billion worth of XRP pairs exchanged hands in the futures market.

This is still quite far from the current record of $85 billion worth of futures that were traded on December 2, 2024, back when Ripple had its first legal victory against the SEC.

However, it is a strong indication that the market could be ready for the token’s next leg up following the approval of its first ETF.

Bull Flag Breakout Favors Big Move

Looking at the daily chart, XRP’s bull flag has been broken and this could be the strongest buy signal of the year as it could deliver sizable gains based on the pattern’s pole size.

This bullish breakout has been accompanied by strong trading volumes along with a ‘golden cross’ between the 9-day and 21-day exponential moving averages (EMAs).

XRP Daily Chart (Bitstamp) – Source: TradingView

Moreover, the Relative Strength Index (RSI) has entered overbought levels already, which favors a bullish outlook and emphasizes that positive momentum has gained significant traction.

The $2.7 level – a former resistance – could be the next area of retest for XRP. If the price drops to that level, this would provide a decent late entry for traders.

The next target for XRP would be the $4 level. However, the most outrageous prediction for the token could see it rising to $9 within the next few months if this next leg up ignites a slightly weaker rally than the previous one.

From October 30 to December 2, XRP produced gains of 500%. This is the size of the bull flag’s pole. If we use that to forecast how high the price could go after this breakout but opt to expect a more conservative approach, a 300% gain could still push the token to around $9.