The sixth-largest cryptocurrency, XRP, experienced a significant surge, driven by the excitement of a potential spot Bitcoin ETF approval and a $285 million share buyback program by Ripple Labs. The price rose approximately 10.25% from its weekly low of $0.54 to the current level of $0.60. This positive momentum could potentially push XRP’s price beyond the long-standing consolidation phase and above the $0.8 mark.
Over the past six months, XRP’s price chart has shown horizontal movement with peaks and troughs forming within converging trend lines, indicating a symmetrical triangle formation. The repeated testing of these trend lines suggests investor awareness of the pattern, and a long-tailed rejection candle on January 3rd hints at a bullish sentiment despite uncertainties.
Ripple Labs, the company behind XRP, initiated a share buyback worth $285 million from early stakeholders and employees. This buyback is part of a broader $500 million plan, including expenses related to converting restricted stock units to common stock.
The share buyback and the optimism surrounding spot Bitcoin ETF approvals have contributed to XRP’s recent price increase to $0.60. If the upward momentum continues, XRP could gain an additional 6% in value by next week, potentially leading to a breach of the general trend line.
For XRP to break out of its prolonged consolidation phase, a strong break above the resistance trend line of the triangle formation is needed. Such a breakout could lead to a concentrated increase in buying momentum, pushing the price up by 18% to $0.75 and then possibly to $0.93. However, investors should watch for the confirmation of this recovery by the breakout of the triangle formation, as any failure could result in continued sideways movement or a sharp decline if the price falls below the triangle’s lower trend line.