XRP: The next reasonable target is $4.5?

The price of XRP has increased by 1% in the past 24 hours and 6% over the last seven days, trading above the $3 mark on Thursday. Market analysts believe this is positioning XRP for the next bullish moves, supported by several on-chain and technical factors.

Investors return to XRP investment products

According to data from CoinShares, institutional demand for XRP investment products remains steady. XRP ETP products recorded an inflow of a total of $14.7 million for the week ending September 5, bringing the total inflow for the year to $1.4 billion.

Net flow data of cryptocurrency funds | Source: CoinSharesOther large-cap cryptocurrencies like Bitcoin, Solana (SOL) and Sui recorded net inflows of 524 million, 16.1 million, and 600,000 dollars respectively.

Ethereum (ETH) witnessed an outflow of 912 million dollars, indicating that the flow of funds is being shifted from the largest altcoin to other cryptocurrencies, including XRP.

Expectations for the approval of the XRP ETF fund in the US have become a crucial driver for recent performance, positioning the price favorably to continue bullish as more institutional capital flows into the XRP market.

XRP derivatives data leans towards a bullish trend

XRP futures traders are also returning, opening more new positions, indicating that speculative momentum is increasing.

The open contract (OI) of XRP has increased by 11% in the past seven days, reaching $8.3 billion compared to the $7.4 billion recorded on September 4, indicating an increase in trader participation. Specifically, in the past 24 hours, OI has increased by an additional 4%, according to data from CoinGlass.

Futures contract OI for XRP | Source: CoinGlassFunding rate (funding fee) — periodic payments exchanged between Long and Short traders in perpetual futures contracts to keep the price aligned with the spot market maintained in positive territory since August 1.

This index has steadily increased over the past 10 days, as shown in the chart below. This indicates that more and more traders are opening Long positions ( betting that the price will be bullish ) compared to Short positions ( betting that the price will decrease ).

Funding rate based on the weighted OI of XRP | Source: GlassnodeThe increase in open contracts (OI) and a positive funding rate may help the price of XRP recover above the 3 dollar mark in the short term.

XRP price aims for a record high

According to data from TradingView, the price of XRP has been moving sideways in a symmetrical triangle since mid-July on the daily time frame.

On Monday, the price broke through the consolidation zone by closing above the upper boundary of the triangle at $2.95.

"XRP has broken out of a multi-month consolidation phase and the confirmation of the breakout is currently happening with a test level of 3 dollars," analyst CasiTrades stated in a post on Wednesday on X.

The uptrend is gradually being consolidated, with the relative strength index (RSI) rising from 36 to 54 compared to a week ago. According to CasiTrades, important levels to watch when the price breaks through the resistance at 3 dollars are 3.08 dollars and 3.27 dollars.

"Beyond those levels, the Fibonacci extension levels from the larger consolidation phase remain unchanged and still target the $4.5 area as the breakout goal."

Daily XRP price chart | Source: CasiTradesHowever, the bulls will have to overcome resistance from the multi-year high of $3.66, "this is likely to become the retest area after that bullish surge occurs," the analyst added.

Looking closely, analyst Egrag Crypto stated that a bullish triangle on the 4-hour chart targets the level of $3.12 as long as the support area at $2.97 is held.

"The target measured is $3.12 and this level could even increase further."

XRP price chart 4 hours | Source: Egrag CryptoA decisive close above $3 will pave the way for the XRP/USDT pair to rise to $3.15 and then $3.4.

Other analysts have set even more ambitious targets for XRP, suggesting that the price is still on track to reach $20 in this cycle, based on Elliott wave analysis.

Minh Anh