XRP nears $2.35 breakout level after 7% weekly gain and rising inflows

XRP is regaining momentum as the broader crypto market trades sideways. The token rose 0.5% in the last 24 hours and nearly 7% over the past week, reaching $2.29 at the time of writing, according to CoinMarketCap.

Analysts are closely watching a developing bullish structure in XRP’s chart that could push the price towards new short-term highs, even as trading volume remains relatively low across the market.

Market watchers point to a key technical pattern — the inverse head and shoulders — which has historically signalled upward breakouts.

With XRP trading near $2.35, technical analysts say a sustained hourly close above this level could act as a trigger for a move to $2.60 or higher.

This comes after a failed attempt last week when XRP traded near $2.20 but struggled to push past $2.35, slipping into a tight channel between $2.13 and $2.35.

Analysts predict breakout to $2.60–$2.69 if XRP clears key level

Crypto analyst Ali Martinez flagged the pattern on social media, noting XRP’s proximity to completing the bullish inverse head and shoulders. He highlighted $2.35 as a key level to watch for confirmation of a breakout.

A second analyst, who also commented on the price formation, gave a higher short-term target of $2.69 if XRP can break through $2.40.

The analysts agree that price action around $2.35–$2.40 is critical. If XRP can maintain momentum and close above this range, it could confirm the bullish structure and prompt a rally.

These technical observations are being made while market sentiment remains cautious, with little volatility on lower timeframes for most digital assets.

Capital inflows into XRP exceed $335 million in 2024

One of the drivers behind XRP’s recent rise is a strong wave of capital inflows into the token.

A recent report from CoinShares shows that XRP has attracted $335 million in year-to-date inflows, including $10.6 million in the past week alone.

These figures come as total assets under management (AUM) for crypto products hit $188 billion, with $1 billion added in just the past week.

XRP’s continued popularity with institutional investors appears to reflect broader market expectations around the Ripple ecosystem’s growth.

The token has consistently remained among the top altcoins for inflows in recent months, even during periods of broader market uncertainty.

Ripple’s banking licence hopes add fuel to bullish outlook

The inflows may also be linked to Ripple’s reported efforts to secure a banking licence from the US Office of the Comptroller of the Currency (OCC).

If approved, this could significantly strengthen the XRP Ledger’s standing in the financial sector and improve adoption of RLUSD — the native stablecoin Ripple is planning to roll out.

The expectation is that a successful application would open the door for broader use of XRP-based solutions in banking and payments, especially within the US market.

That, in turn, could attract more users and institutions to the XRP ecosystem, potentially raising demand for the token itself.

As investors await more concrete news on the licence front, technical signals and market inflows remain key indicators for XRP’s near-term performance.

Whether the token manages to break through the $2.35–$2.40 zone and rally toward the predicted $2.60–$2.69 range will depend on whether buyers step in at this critical juncture.