The XRP price has stabilized in the past few days as it jumped by ~9% from its lowest point this month. It was trading at $1.9315 today, Dec. 22, and is flashing three highly bullish patterns as potential catalysts build.
XRP Price Technicals Show That a Rebound is Possible
The daily timeframe chart shows that the Ripple price has been in a strong freefall this year. It plunged from a high of $3.668 in July and bottomed at the key support at $1.8145.
The ongoing XRP price crash has pushed it below the 50-day and 100-day moving averages. That is a sign that bears remain in control. Indeed, the price remains below the Supertrend indicator.
On the positive side, the coin has formed three chart patterns that may trigger a bullish breakout in the near term.
First, the value of Ripple has formed a bullish triple-bottom pattern at $1.8145, its lowest level in October, November, and December. This pattern is usually a sign that bears are afraid for placing short bets below the price.
Second, the token has formed an inverted head-and-shoulders pattern, which is a common bullish reversal pattern. Its neckline is shown in green, and it connects the highest swings since October 27.
Third, it has formed a falling wedge pattern, which is made up of two descending and converging trendlines, with a bullish breakout happening when the two lines are nearing their confluence.
Additionally, the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have formed a bullish divergence pattern. This is a contrarian pattern that happens when these indicators are rising as the price remains in a downward trend.
Therefore, the most likely XRP price prediction is bullish, with the initial target being the psychological level at $2. A move above that level will point to more upside, potentially to the key point at $2.50.
The bullish outlook will be canceled if the token drops below the key support level at $1.8145. Such a drop will point to more downside, potentially to the psychological level at $1.50.
Top XRP Catalysts Have Aligned
Meanwhile, third-party data shows that the XRP price has numerous catalysts that may push it higher in the near term.
The most important one is that the XRP ETF inflows have soared since their approvals in November. The total net inflows jumped to over $1.07 billion, with the net assets jumping to $1.2 billion. That growth is a sign of continued accumulation by American retail and institutional investors.
Additionally, the Ripple USD (RLUSD) stablecoin is doing well, a trend that will accelerate after the expansion to other layer-2 networks like Base and Optimism. Its total assets have continued soaring and are currently at $1.33 billion. According to CMC, the daily volume of the RLUSD soared to 62% kn in the last 24 hours.
XRP price may also benefit from the gradual increase in its futures open interest, which is a sign that investors are embracing leverage in the industry.