XRP lags Ripple ETF as AUM nears $500 million milestone

But the XXRP fund has actually outperformed XRP. Why？ Unlike other popular crypto ETFs, it is a leveraged fund that seeks to generate daily returns of 2x the performance of XRP price. If XRP increases by 1%, the XXRP stock will rise by 2%.

It is common for some leveraged ETFs to beat their underlying asset. For example, the leveraged ProShares UltraPro QQQ has jumped by 240% over the last five years, while the Nasdaq 100 has gained 126% during the same period.

XRP jumped as investors celebrated the signing of the GENIUS Act, which will support its Ripple USD stablecoin. Data showsthat its market cap has jumped from zero in December last year to over $517 million today. It is also slowly closing in on PayPals PYUSD.

XRP price technical analysis XRP price chart | Source: crypto.news

The daily timeframe shows that the XRP price has been in a strong bull run in the past few weeks. It broke out above the upper side of the symmetrical triangle that was part of the bullish pennant pattern.

XRP then crossed the important resistance point at $3.38, the highest swing on January 16. It has remained above the 50-day and 100-day moving averages, while most oscillators, such as the RSI and the MACD, have pointed upward.

The height of the flagpole section of the bullish pennant was 86%. Therefore, measuring the same distance from the breakout point gives it a target price of $4.2615.