Ripple (XRP) Price Analysis Today: XRP Overtakes BTC Gains after $100M Sell-Out

Ripple (XRP) Price Analysis Today:

XRP price breached the $0.54 level on Oct 6, gaining 6% over the weekend, on-chain data trends suggest that bullish reaction to Ripple’s RPLUSD stablecoin launch and Bitwise ETF filing could be a precursor to a major breakout in the week ahead.

XRP Price Skips Ahead of Bitcoin

XRP is showing early signals of a major breakout after a fairly sluggish start to the month.

The latest US jobs market data published by the US Bureau of Labor Statistics on Friday Oct 4 triggered a bullish reversal across the crypto markets.

Within 72-hours of the NFP report, top-ranked crypto assets including Bitcoin (BTC), and Ethereum (ETH) have delivered major gains and breaching key resistance levels at $62,000 and $2,400 respectively, over the weekend.

Curiously, XRP price performance since Oct 4 shows the Ripple-backed coin has skipped ahead of the pioneer crypto asset, before hitting a major resistance cluster.

According to TradingView’s TOTALCap chart highlighted in blue above, the global crypto sector has gained 5.3% since Oct 4, adding over $100 billion dollars in market capitalization in the process.

Meanwhile, XRP price rose 6.12% over the weekend, moving from a 30-day low of $0.50 on Oct 4 to hit the $0.54 level at the time of publication of Oct 6.

A mega-cap altcoin like XRP overtaking BTC at the onset of a major market uptick, it often signals the presence of other active internal bullish indicators.

Recent media reports suggests that Bitwise XRP ETF filing and capital inflows that accompanied Ripple’s RPLUSD launch have been pivotal to XRP’s price outperforming BTC over the weekend.

Ripple Pulls $43M Inflows Within a week of  RLUSD Stablecoin Launch

The recent momentum behind XRP can largely be attributed to a combination of two pivotal events. First, on Sept 28  Ripple launched its native stablecoin RLUSD, which was quickly well-received by investors.

As reported by the Ripple Stablecoin Tracker, an X (formerly Twitter) account dedicated to monitoring its issuance and burn, investors have minted over 43.2 million units of the RLUSD stablecoin has already being minted as of Oct 6, within a week post-launch.

With over $43 million worth of fresh capital inflows trickling into the ecosystem, the growing liquidity from the RLUSD mints has evidently supported XRP’s ongoing price surge.

Evidently, the RLUSD stablecoin launch has seen Ripple showcase its technological advancements, further deepening investor confidence.

But more importantly, stablecoin launch eases on-ramping process for major blockchains, making it easier for new investor to bring in additional capital into the XRP ecosystem, in the weeks ahead.

Bitwise’ ETF Filing Success Adds to Bullish Momentum

Furthermore, Bitwise’s ETF filing added another bullish factor. The potential of an XRP exchange-traded fund has captured institutional attention, as it offers a regulated and mainstream investment vehicle for XRP exposure.

On Oct 2, the US Securities and Exchange Commission (SEC) confirmed that Bitwise, an asset management firm with over $4.5 billion AUM has filed for XRP spot ETFs. Notably, Bitwise already has an actively trading Bitcoin ETF, which topped $2.51 billion in holdings of Oct 6, 2024.

Many traders are positioning themselves in advance, expecting that an approved ETF could significantly boost demand for XRP in the near future.

Traders Halt $100M Sell-Off amid Bullish Signals

Affirming this bullish narrative, on-chain data shows that majority of XRP investors began shifting their holdings into long-term savings, after nearly a month of selling momentum.

CryptoQuant’s Exchange Reserve chart below monitors daily changes net-flows of deposits and withdrawals across major exchanges and trading platforms, revealing traders’ short-term sentiment.

After a major crypto market crash occurred on Sept 5, the chart above shows how exchange deposits, rose persistently from 2.94 billion XRP to reach the 3.12 billion XRP on Oct 1. During this period the total deposits on exchange platforms grew by 187 billion XRP valued at approximately $100 million.

Typically, a persistent exchange inflows suggests traders are looking for short-term selling opportunities and vice versa.

However, since Bitwise’ XRP ETF filling on Oct 2, began shifting holdings into long-term cold storage. At the time of writing on Oct 6, the exchange reserves has dipped to 3.06 billion XRP.

Valued at the current prices, investors have effectively transferred over 60 million XRP worth approximately $32 million, out of exchanges and trading platforms amid the 6% rally in the last 3-days.

If investors keep burning more XRP coins to mint RLUSD as observed over the past week, XRP short-term supply could drop even further, paving the way for another potential accelerated breakout in the days ahead.

XRP Price Forecast: Bulls Anticipate $0.55 Breakout in the Week Ahead

These RLUSD launch and Bitwise ETF filing have evidently helped XRP price outperform Bitcoin (BTC) over the weekend. The $32 million decline in market supply, and $43 million inflows from RLUSD mints suggest XRP price could be on the verge of another leg-up towards $0.55 in the week ahead.

2 Technical indicators in the chart above also support this bullish XRP price forecast.  First, the Donchian Channel indicator on the chart shows XRP is consolidating near the lower channel, with strong support around $0.52.

The upper resistance boundary is at $0.56, a potential breakout target if momentum builds. XRP appears to be holding within this zone, bouncing off the support level, signaling that bulls could be preparing to reclaim higher ground.

Additionally, the RSI Divergence Indicator remains below 50 at 40.12, indicating that bearish pressure persists but could soon subside. A crossover above 50 would confirm a bullish reversal, reinforcing the likelihood of a breakout beyond $0.55.

For now, the key resistance remains at $0.55, with support at $0.50, which traders will monitor closely in the days ahead. If XRP can clear $0.55, we could see a rally toward $0.58 or even $0.66 based on historical price action.