TL;DR

Analysts predict potential targets between $3 and $4 for XRP if $2.30 holds as support.

Mixed signals from on-chain data show a decline in exchange-held XRP, suggesting reduced selling pressure, while the RSI at 71 indicates possible overbought conditions and a potential short-term correction.

New ATH Incoming?

Ripples XRP defied the ongoing consolidation in the cryptocurrency market by recording a 12% price increase in the past 24 hours. It spiked to as high as $2.77 (per CoinGeckos data) before slightly retracing to the current $2.70.

XRP Price, Source: CoinGecko The main factor triggering the uptrend seems to be the US SECs decision to acknowledge Grayscales application to convert its XRP Trust into an exchange-traded fund (ETF). A potential regulatory approval (which may come in the next 240 days) will grant investors more options to gain exposure to the cryptocurrency without having to worry about self-custody, for example.

Numerous market observers think XRP might be poised for further gains. The popular X user Ali Martinez envisioned a rise to as high as $3 as long as the price holds steady above $2.30. 

EGRAG CRYPTO and Mikybull Crypto also weighed in. The former claimed that a strong close above $2.75 could result in a local high of $2.94. Remember, anything below $3.40 is merely noise in the market, the analyst added. Mikybull was even more bullish, forecasting that a new all-time high of $4 could be on its way.

What are the On-Chain Metrics Signaling?

The amount of XRP stored on exchanges also suggests that the asset might be gearing up for an additional rally. According to CryptoQuants data, the figure has been on a significant downfall in the past month. This indicates a potential shift from centralized platforms toward private wallets, which could be interpreted as bullish since it reduces the immediate selling pressure. 

On the other hand, the Relative Strength Index (RSI) signals the opposite scenario. The technical analysis tool measures the speed and change of price movements and helps traders assess possible reversal moments. It varies from 0 to 100, with readings above 70 suggesting that XRP could be overbought and headed toward a correction. Currently, the ratio is in bearish territory, set at roughly 71.