XRP Surges 6% as Bitcoin Rally Boosts Altcoin Market

XRP, the cryptocurrency associated with Ripple Labs, has seen a significant surge in interest, suggesting a potential market reversal after a prolonged correction. The price of XRP rose by over 6% in the past 24 hours, reaching approximately $2.21 during the evening North American trading session on Tuesday. This increase coincided with Bitcoin's rally above a critical resistance/support level of around $92k, which boosted confidence in the broader altcoin market.

Technical analysis indicates that XRP has been forming a market reversal pattern over the past few weeks, characterized by a possible inverse head and shoulders (H&S) formation. The recent price pump brought XRP close to a crucial resistance level around $2.23. If this level is consistently breached, it could confirm a bullish wave in the near future. In the four-hour timeframe, XRP has shown a shift in momentum towards a bullish outlook after breaking out of a multi-week falling logarithmic trend. A consistent close above $2.23 would pave the way for XRP bulls to target the next resistance level of approximately $3.

However, if XRP fails to maintain a consistent close above $2.23 in the coming days, it could result in further price correction, potentially dropping back to $1.76. The market sentiment has been further bolstered by the confirmation of the nomination of the new U.S. SEC Chair, which has brought clarity to the Ripple lawsuit and the broader crypto market. Additionally, the odds of a spot XRP ETF approval by the end of 2025 have surged to 72 percent, according to the polymarket, as investors speculate on imminent approvals.

As more institutional investors gradually accumulate XRP in anticipation of a parabolic rally in the coming months, the market is expected to continue improving. The rising crypto Open Interest (OI) has also contributed to the bullish sentiment, following the ongoing parabolic price rally of gold. Overall, the current market dynamics suggest a potential bullish wave for XRP, with the next target being $3, provided that the price consistently closes above $2.23.