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When XRP Rises to $5, Investors Make $1 Billion
XRP, one of the top cryptocurrencies, has witnessed an impressive price surge on Wednesday, increasing by over 20%. This surge has brought significant profits to investors, with an estimated increase of about $1 billion. Amidst this upward trend, the market is abuzz with speculation that XRP could reach $5, driven by technical patterns and renewed optimism among investors. Investors benefit as XRP skyrockets On Wednesday, XRP significantly increased, testing the upper threshold of an important flag channel. This increase led to a total profit of about 800 million dollars for investors. However, as profits are being realized, this trend may reduce the short-term upward momentum. The recent price increase occurred after Ripple approved the launch of the stablecoin RLUSD earlier this week. Since this announcement, XRP has risen by more than 20%, recovering from the drop below $2. This legal milestone has reinforced investor confidence, driving the upward momentum of XRP. Technical indicators point out the potential $5 Option traders are optimistic about the prospects of XRP. The $5 call option, traded on Deribit, is the second most popular XRP option and has the highest open interest at $1.25 million. This indicates that traders are betting on a sustained price increase. From a technical analysis perspective, XRP is currently forming a "flag pattern". This pattern, characterized by a strong upward movement (flagpole) followed by a consolidation phase (flag), often indicates a continuous uptrend. If XRP breaks out with significant volume above the upper boundary of the flag channel, the price could surge to a maximum profit target of $4.75. To turn this price increase scenario into reality, XRP must surpass the psychological resistance level near $3.00. Momentum indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator are both in neutral territory and rising, signaling strong bullish sentiment. The data on the chain indicates a mixed signal Despite the price increase, the figures on the chain paint a more nuanced picture. The weekly active addresses of XRP have decreased from 496,000 last week to 341,000 as of Wednesday. The decline in these active addresses indicates a weakening on-chain activity and reduced investor participation. If XRP fails to maintain its upward momentum, a daily candle closing below $1.35 could invalidate the bullish argument and potentially push the price down to $0.93. Prospects: Can XRP reach $5? Although the recent price increase of XRP has been remarkable, its journey to $5 still faces many challenges. Investors are closely watching key resistance levels and profit-taking trends. However, with strong technical patterns and increasing interest from options traders, XRP could still achieve a significant increase if the growth momentum is maintained. Whether XRP can surpass the $3.00 mark and continue to rise will depend on a sustained price increase sentiment, increased trading volume, and broader market conditions. Currently, XRP remains a notable cryptocurrency as it seeks to capitalize on its recent gains. DYOR! #Write2Win #Write&Earn $XRP {spot}(XRPUSDT)