After Months of Consolidation, XRP Appears Poised to Breakout

After months of trading within a compressed range, XRP appears to be coiling for a sharp breakout, with bullish price targets

After months of trading within a compressed range, XRP appears to be coiling for a sharp breakout, with bullish price targets reaching as high as $3.87.

Currently changing hands around $2.35, XRP has shown signs of strength despite short-term corrections. Over the past 24 hours, XRP increased by 0.25% with a trading volume increase of almost 32%, indicating renewed market activity.

XRP is holding firm above the buy zone following a 26% breakout, with bullish momentum aiming for levels as high as $3.87. | Source: VipRoseTr via X

Crypto analyst VipRoseTr recently identified a breakout from a falling wedge pattern—a classic bullish reversal signal. “The asset jumped from the buy area between $1.85 and $1.90 to hit a local high near $2.40,” the analyst noted. The 26% surge from the reversal zone has placed XRP in a consolidation phase between $2.30 and $2.35, which is seen as constructive by technical traders.

Several indicators on the XRP chart suggest that a surge in volatility may be pending. The daily chart reveals a tightening symmetrical triangle, which is usually followed by large price moves. Meanwhile, XRP is holding above the 26-day Exponential Moving Average (EMA), supported by the convergence of the 26, 50, and 100 EMAs—forming a classic squeeze pattern.

The XRP/BTC weekly chart has formed its first golden cross, signaling potential for a significant bullish trend reversal. | Source: XRP Update via X

This pattern reflects a build-up in pressure, which is typically followed by a sharp breakout in either direction. The Relative Strength Index (RSI) is currently close to 60, leaving enough room for further upside before entering overbought territory.

“XRP has a history of explosive moves when volume is low around key technical levels,” one analyst said. “The setup is textbook—now we just need a trigger.”

Among the potential upside targets are $2.68, $2.95, and $3.39, with the ambitious $3.87 level acting as the outer boundary of current projections. On the downside, losing support at $2.30 could send XRP back toward $2.26 or even $2.10, where long-term support lies.

Optimism over the pending decision from the U.S. Securities and Exchange Commission (SEC) regarding a proposed spot XRP ETF is also fueling the narrative around higher XRP prices. If approved, the fund would be a historic milestone for Ripple and unlock access for institutional investors, potentially sending the XRP price to new highs.

VolatilityShares will be launching the first-ever 1x XRP Futures ETF ($XRPI) tomorrow, putting XRP firmly on Wall Street’s radar. | Source: John Squire via X

“The market is clearly holding its breath,” said one analyst. “ETF anticipation, combined with XRP’s current chart structure, sets the stage for a dramatic move—one way or another.”

This decision becomes even more crucial considering the recent SEC activity around Bitcoin and Ethereum ETFs. BlackRock’s Ether ETF received a crucial acknowledgment from the SEC earlier this week, while Dogecoin ETF applications are still being reviewed. The broader market sees these developments as precursors to a more inclusive stance on digital asset ETFs.

While the XRP price is currently benefiting from bullish momentum, regulatory uncertainty remains a major concern. The Ripple lawsuit against the SEC has yet to reach a final verdict after a long-running legal battle. The SEC claims that Ripple’s sale of XRP was an unregistered securities offering, while Ripple maintains that XRP should be handled as a commodity or currency.

Despite a partial legal win for Ripple in 2023, the lack of a complete settlement casts a shadow over the regulatory status of XRP. This, in turn, complicates the introduction of regulated financial instruments like ETFs.

According to Ripple CEO Brad Garlinghouse, the company is legally confident. “We think the law is on our side, and we’re prepared to get through this,” Garlinghouse told reporters in a recent interview.

Any regulatory clarity in Ripple’s favor can reignite investor confidence and contribute to XRP’s potential to retest or even exceed its all-time high of $3.84.

While short-term projections point to $3.87 as a possible price target, long-term forecasts for XRP vary. Optimistic analysts predict that Ripple’s native token could exceed $5.00 by year-end 2025, which depends on factors such as strong institutional adoption, a favorable legal outcome, and broader cryptocurrency market trends.

XRP was trading at around $2.41, up 2.77% in the last 24 hours at press time.