XRP Price Prediction: ETF Accumulation Pays Off as XRP Explodes – $6 Next?

XRP (XRP) has gone up by 12% in the past 24 hours and is already nearing $2.4 as bears seem to be getting squeezed out of their short positions en masse.

Trading volumes have gone up by an eye-popping 160% during this period and currently sit at $8 billion. This figure accounts for 5.6% of the token’s circulating market cap, reflecting strong buying pressure as XRP rips through multiple technical ceilings.

According to data from SoSoValue¹, the combined assets of all XRP-linked exchange-traded funds (ETFs) in the United States have already surpassed $1.2 billion and may be heading to $1.5 if the price keeps rising.

What’s even more impressive is that these vehicles have brought in positive inflows for 33 days in a row, including yesterday. This is a remarkable streak, and it has probably broken all existing records for crypto-focused ETFs.

What this strong accumulation could have done is create a strong floor for XRP from which it was able to bounce to levels where most bears had placed their stop orders. As a result, the token has staged a massive short squeeze.

Spot Buying Seems to Be Influencing The Move, Not Speculators

Crypto liquidations confirm this, as nearly $400 million worth of crypto short positions have been blown up in the past 24 hours alone. Of that total, XRP shorts worth nearly $26 million were flushed out.

This has been one of the largest single-day short liquidations in the past 6 months, confirming that bears are feeling the sting of this uptrend.

Moreover, open interest (OI) for XRP futures² has been steadily climbing and currently sits at 2 billion tokens, still 33% away from the metric’s recent all-time high of 3.08 billion XRP back on July 21.

The fact that OI is still far away from hitting a record indicates that this move could be driven by strong spot buying. Organic demand like this points to upcoming news that could boost the project’s fundamentals and fair value.

Meanwhile, Ripple’s native stablecoin, Ripple USD (RLUSD), experienced a 33% boost in its market on December 18, which points to increased adoption of the token. Ripple has been expanding its footprint in the Middle East and other important jurisdictions by securing licenses that allow it to operate legally as a digital payments provider and stablecoin issuer.

Is the market expecting that global adoption of the XRP Ledger will take a leap forward?

Massive Weekly RSI Buy Signal Has Been Confirmed

Exactly on December 18, as RLUSD experienced this strong market cap boost, we predicted that XRP could be ready to make a strong comeback as the token’s weekly Relative Strength Index (RSI) flashed a massive buy signal.

XRP/USD Weekly Chart (Binance) – Source: TradingView

The last three times that the RSI hit 35 in this higher time frame, XRP booked gains ranging from 208% and 1,480%. If history repeats, we could be about to witness a move to at least $6 for XRP in the next few months.

In addition, the RSI has moved above the signal line, confirming a change in the prevailing trend. The oscillator currently sits at 50. If it rises to 60, this would further validate a bullish outlook that could result in big gains down the road.