U.S. Treasury’s plan to set up Ripple wallet – Impact on XRP?

• Technical analysis on XRP has shown a bullish triangle breakout, with prices consolidating near $3.16.
• Recently, XRP’s NVT ratio spiked to a historic high, reflecting increased market cap relative to on-chain transaction volumes on the network.

Ripple[XRP]  has entered the spotlight with its promising price action and chart patterns hinting at a long-term bullish trend.

This happened when news of the U.S. Treasury setting up an XRP wallet intensified investor interest.

Market sentiment on XRP

Technical analysis on Ripple has shown a bullish triangle breakout, with prices consolidating near $3.16 after surpassing the $1.81 support.

This setup aligns with long-term market trends, suggesting a sustained move toward $3.32 and possibly beyond. Such patterns have been a good indicator of speculative growth.

Source: TradingView

The 1,239-day consolidation strengthens this projection, providing a foundation for an upward trajectory. This suggests that the aim for an ATH could be achieved soon.

Recently, XRP’s NVT ratio spiked to a historic high, reflecting increased market cap relative to on-chain transaction volumes. This suggests that XRP’s market cap may be significantly higher than the volume of transactions processed.

The recent high spike might have been caused by external factors, such as speculations about Elon Musk investing in XRP. This signaled high market confidence and increased attention among investors and traders.

Source: CryptoQuant

A bold step by the U.S.

News of the U.S. Treasury engaging with XRP has led to speculation and excitement among investors and traders. Social media reactions indicated a rapid increase in the XRP held in this supposed Treasury wallet, which could contribute to bullish sentiment.

The market might react positively in the short term due to increased visibility, credibility, and potential use cases for XRP.

However, the long-term impact would depend on adoption, regulatory clarity, and how XRP’s technology is integrated into broader financial systems.

Given the speculations, the announcement could also lead to increased volatility. If the community sees this as a strong endorsement, it might drive the price up. However, any ambiguity or negative news could lead to sharp corrections.

Realistic or not, here’s XRP market cap in BTC’s terms

Ripple’s bullish momentum is driven by technical analysis, speculations of Elon Musk’s investment, and U.S. Treasury involvement.

The price action shows potential growth, but the long-term impact depends on adoption, regulatory clarity, and integration into financial systems.

Market sentiment remains high, but caution is advised due to potential volatility.