XRP, if it crosses 'this' level, it goes straight to $1.7?..."Buy spot and wait"

▲ XRP/ChatGPT generated image

After XRP surged 35% over the past three months, an analysis suggests it could stage its strongest rally yet in this virtual asset cycle. This is the result of a combination of a short-term symmetrical triangle breakout signal, the explosive expansion of stablecoin RLUSD's supply, and the creation of a large institutional-grade treasury.

According to U.S. financial media outlet Benzinga on October 1 (local time), crypto analyst Ali Martinez diagnosed that XRP is forming a symmetrical triangle pattern on the 1-hour chart. Martinez predicted that “a breakout to the upside will be confirmed only if a 1-hour candle closes above $1.54,” and if the breakout is confirmed, a short-term rally could lead to an approximate 10% increase, reaching $1.70. Renowned trader CrediBULL Crypto also stated, “Although it is trapped in a low timeframe range, it will be extremely explosive once the breakout begins,” suggesting a strategy of buying spot and waiting.

The rapid growth of RLUSD, a stablecoin issued by Ripple, is also strongly supporting its on-chain fundamentals. RLUSD's circulating supply increased by approximately $112 million in the past week alone. This puts it close on the heels of PayPal's PYUSD, which has a total value of $2.74 billion, with only about a $248 million difference. Currently, 56% of RLUSD's total supply is distributed on the Ethereum (ETH) network, and the remaining 44% is on the XRP Ledger. From September 21 to 28, the XRP Ledger-based supply increased by $63 million, and the Ethereum-based supply increased by $49 million.

Super large-scale fundraising and treasury building plans by institutional players have also emerged as positive supply-demand factors. Evernorth plans to create a treasury worth 473.3 million XRP. This asset pool will consist of approximately 126.8 million XRP supported by Ripple, approximately 211.3 million XRP from sponsors, and approximately 84.4 million XRP purchased directly from the market. This project has already secured private investment commitments exceeding $1 billion, demonstrating strong institutional interest.

Experts evaluate that if XRP firmly breaks through the short-term resistance of $1.54, the expansion of RLUSD's liquidity and the $1 billion institutional accumulation will create synergy, leading to unprecedented upward momentum. Amid overall market volatility, strong on-chain performance and institutional supply and demand are providing support, increasing expectations for the next rally.

[Key Article Summary]

-XRP is forming a symmetrical triangle convergence that could lead to a rise to $1.70 if it breaks above $1.54.

-Stablecoin RLUSD's supply surged by $112 million in a week, closely trailing PYUSD.

-Evernorth has secured $1 billion in private investment and commenced building a 473.3 million XRP treasury.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*