Multiple favourable information or support may lead XRP to retest the historical high of $3.4.

Gate News bot news, XRP is one of the top five Crypto Assets, performing best aside from Bitcoin (BTC), with a rise of 11.1% year to date.

Due to XRP entering a long-term consolidation period after a strong rise from November last year to January this year, the trading volume has slightly decreased.

Several legal victories, positive changes in the leadership of the U.S. Securities and Exchange Commission (SEC) (including the appointment of a new chairman who supports encryption), and the Chicago Mercantile Exchange (CME) launching XRP futures are some of the recent favorable factors driving the rise in XRP prices.

Last week, the trading volume on the first day of XRP futures listing reached $19 million. Currently, there are two contracts linked to XRP available for trading: one is a micro contract for 2,500 XRP, and the other is a large contract for 50,000 XRP, primarily aimed at institutional traders.

"The addition of XRP and Micro XRP futures to our leading, regulated Crypto Assets product suite will provide investors with high liquidity and high capital efficiency tools to support their growing Crypto Assets investment and hedging strategies," commented Giovanni Vicioso, Global Head of Crypto Assets Products at CME.

At the same time, due to changes in the leadership of the US SEC, there is an optimistic outlook for such products, and the likelihood of XRP spot ETF being approved this year is quite high.

These favorable factors support the bullish forecast for XRP's price and may drive the token to retest its historical high of $3.4 after emerging from the consolidation phase.

The daily chart of XRP shows that the token has been struggling to maintain its bullish structure, as selling pressure has been quite strong when it reaches 2.6 dollars.

The short-term exponential moving average (EMA) indicates that XRP has entered a consolidation period, but since the price is above the 200-day EMA, it is still in an upward trend.

According to the scale of the descending triangle that XRP broke, its price could rise to the first target of $3.2.

However, the momentum indicator has been on a downward trend, and the 9-day EMA is at risk of breaking below the 21-day EMA, which would confirm a bearish outlook in the short term.

If a "death cross" occurs, the price may fall to the level of 2 dollars, as the current level of liquidity seems insufficient to push XRP higher.

Reaching the $2 area may attract buyers and provide the necessary momentum for XRP to rise to $3 or even higher.

Source: Cryptodnes