XRP Bulls Gain Momentum: What Could Trigger a Move Towards $2.65?

XRP Price Action Chart

XRP's price has risen by 3% in the last 24 hours and has increased 15.5% since hitting a low of $2.10 on November 21. This sets the stage for further price increases, supported by various fundamental, on-chain, and technical factors.

Key Takeaways:

XRP is approaching new all-time highs, fueled by rising institutional interest and a positive trading atmosphere.
Technical analysis indicates that XRP’s price could rise by 27% to reach $2.65.

Institutional Demand for XRP Investment Products

Recent data from CoinShares indicates that interest from institutions in XRP investment products remains strong.

Related: XRP sentiment declines, creating potential for a rally: Santiment

For the week ending December 5, XRP exchange-traded products (ETPs) saw inflows of $245 million, bringing the year-to-date total to $3.1 billion, which significantly surpasses the $608 million inflows recorded in 2024, according to James Butterfill, head of research at CoinShares. He stated:

XRP Investment Flow Data
Crypto funds net flows data. Source: CoinShares

Additionally, spot XRP exchange-traded funds (ETFs) have maintained an impressive record with positive inflows, adding $10.23 million last Friday, marking 15 consecutive days of inflows. This has brought cumulative inflows to nearly $900 million, with total assets under management (AUM) reaching $861.3 million, according to SoSoValue's data.

Spot XRP ETF flows data. Source: SoSoValue

Crypto investor Giannis Andreou noted on an X post that over 400 million XRP tokens are already locked within these investment products. He added that ongoing spot XRP ETF inflows will probably influence XRP’s future price direction.

Bullish Sentiment Among XRP Traders

XRP's price is expected to rise as interest from leverage traders grows, as they continue to open new positions, indicating an increase in speculative activity. Recent data shows that XRP’s daily funding rate has shifted to a positive 0.0189%, up from 0.0157% the previous day, suggesting that most traders are opting for long positions.

XRP Funding Rates
XRP OI-weighted funding rates. Source: CoinGlass

Currently, the ratio of long to short accounts for XRP on Binance is favoring bullish positions at 72%. While this increase in activity brings some liquidation risks, it also reflects increasing confidence in XRP’s price potential.

XRP Long/Short Account Data
XRP: Long/short accounts on Binance. Source: CoinGlass

Analysts at the trading platform Beacon have noted that XRP traders on Hyperliquid are showing bullish sentiment as well, with 72% long positions valued at $94.5 million, compared to $37.6 million in short positions.

XRP’s Technical Breakout Target of $2.65

Data from Cointelegraph Markets Pro and TradingView reveals that XRP is currently trading above a symmetrical triangle pattern on the four-hour chart.

To maintain its upward momentum, XRP needs to close above the triangle’s upper trendline at $2.15, with a target price of $2.65 indicating a potential 27% increase from current levels.

XRP Four-Hour Chart
XRP/USD four-hour chart. Source: Cointelegraph/TradingView

A pseudonymous trader, BD, stated that the symmetrical triangle visible on the 1-hour chart shows XRP coiling tightly, hinting at possible future movements. As previously reported, a solid daily close above $2.30 would confirm a structural break and could lead to prices reaching $2.58, provided that support at $2 remains intact.