- XRP investors realized nearly $800 million in profits on Wednesday following its recent 20% rise.
- Options traders are preparing for the possibility of XRP reaching the $5 mark.
- XRP could rally as high as $4.75 if it breaks above the upper boundary of a flag channel.
Ripple's XRP continued its rally on Wednesday as it looks to test the upper boundary of a key flag channel. Following the recent price rise, investors booked profits worth nearly $800 million while options traders bet on the remittance-based token hitting the $5 mark.
XRP options suggest bullish momentum amid profit-taking among investors
XRP has surged over 20% since Tuesday after Ripple announced it received approval to launch its RLUSD stablecoin. Since recovering from the dip just below $2, investors have booked nearly $800 million in profits. This developing trend of high profit-taking upon any major price rise could slow down XRP's bullish momentum.
 [00.10.41, 12 Dec, 2024]-638695557793479247.png)
XRP Network Realized Profit/Loss | Santiment
Additionaly, XRP's weekly active addresses have also begun to taper off, declining from 496K last week to 341K on Wednesday. This signals lesser on-chain activity and investor interest for XRP.
 [00.10.49, 12 Dec, 2024]-638695558169591423.png)
XRP Weekly Active Addresses | Santiment
Meanwhile, the XRP options market shows that traders favor an upside move, with the $5 call being the second-most traded XRP option, according to Amberdata, CoinDesk reported.
The $5 call on options exchange Deribit also hosts a notional open interest of $1.25 million — the highest among out-of-the-money calls. Out-of-the-money calls are option contracts with a higher strike price than the underlying asset's market price.
Ripple's XRP bull flag signals rally toward $4.75
XRP is posting a bull flag following its recent consolidation in the past few days.
This pattern is formed by a sharp price increase known as the flagpole, followed by a consolidation that resembles a flag before a breakout occurs.
XRP/USDT daily chart
If XRP sustains a high volume above the upper boundary of the flag channel, it could signify the continuation of its rally with a maximum profit target near $4.75. However, it must first overcome the resistance near the $3.00 psychological level to complete such a move.
The Relative Strength Index and Stochastic Oscillator momentum indicators are above their neutral levels and trending upward, indicating dominant bullish sentiment.
A daily candlestick close below $1.35 will invalidate the thesis and send XRP toward $0.93.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Shiba Inu could recover as it finds support around key level
Shiba Inu (SHIB) price hovers around $0.000021 on Tuesday after retesting and bouncing off from key support the previous day. Sideline investors looking to accumulate SHIB can do so at support levels from $0.000019 to $0.000021.
Bitcoin recovers after retesting $90K support
Bitcoin’s price recovers and trades at around $95,500 on Tuesday after dipping below $90,000 the previous day. The recent downturn at the start of the week has liquidated over $734 million in total liquidations, more than $152 million specifically in BTC.
Monero bulls remain strong, eyes double-digit gains
Monero price trades in the green, around $204.92 on Tuesday after holding its ascending trendline support the previous day. The technical outlook suggests a reversal ahead as XMR’s MACD indicator shows a bullish signal.
XRP sees high buying pressure as lawyer weighs in on SEC's appeal against Ripple
XRP's strong resilience against the wider crypto market decline was strengthened by increased buying activity across retail and institutional investors. SEC's delay in filing opening brief in appeal over Ripple vs SEC ruling is a normal occurrence in litigation processes.
Bitcoin: Room for a recovery or continuation of the pullback?
Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.