XRP is making a quiet comeback. After briefly crossing $3 earlier this year for the first time since 2018, the token has settled into the mid-$2 range—still showing strong momentum with over 400% gains year-on-year.

Recent strength is fueled by two major factors: Bitcoin's breakout above $100,000, which lifted broader market sentiment, and the end of Ripple's long legal battle with the SEC.

XRP price is making a quiet comeback. After briefly crossing $3 earlier this year for the first time since 2018, the token has settled into the mid-$2 range.

While it has since faced rejection at the $3 level, XRP is still showing strong momentum with over 400% gains year-on-year.

Two major factors have contributed to XRP's recent strength. Firstly, Bitcoin's breakout above $100,000 has lifted broader market sentiment and brought renewed interest in altcoins.

Secondly, the closure of the SEC lawsuit against Ripple has also brought stability to the token.

The lawsuit, which had a bearing on XRP's performance, is now resolved, paving the way for Ripple's $1.25 billion acquisition of Hidden Road and renewed investor confidence in the company's vision.

However, XRP price will need to break above key resistance at $2.8 and $3 to set the stage for a continuation towards the all-time high of $3.40.

Despite the token's impressive recovery from the lows of 2022, it has yet to fully integrate the gains and break above the Fibonacci resistance at $3.

A decisive close above $3 would open the door for a continuation towards the next key resistance at $3.40, which XRP last hit in January 2018.

While the technical setup is promising, any potential setbacks or reversals could bring support levels at $2, $1.50, and $1 into play.

Shift in Fundamentals

Shifting fundamentals are positioning XRP for a year of possibilities. As the dust settles on the SEC lawsuit and Bitcoin's price continues to rally, the stage is set for new highs in the crypto market.

With regulatory uncertainty behind it, XRP is better positioned than it has been in years to navigate the turbulent world of crypto.

And as Ripple expands its presence in global finance, especially through strategic acquisitions, XRP's relevance in cross-border payments and institutional use cases is becoming increasingly clear.

The broader altcoin market is also showing strength, with Ethereum, Cardano, and Solana gaining traction as investors rotate out of Bitcoin.

If bullish sentiment persists and BTC extends its rally, XRP could ride the momentum and challenge its historical highs once again. However, if Bitcoin faces setbacks and the market mood sours, XRP could be vulnerable to a correction.