Driven by Growing Institutional Interest, XRP Appears Poised for a Breakout

The price of XRP is up more than 8% for the week to start the new week, and the token could be setting up for a breakout that may define its trajectory for the remainder of 2025.

What Happened: Driven by growing interest from institutional investors and positive developments in the Ripple (NYSE:RPL) lawsuit, XRP is showing signs of a potential breakout that could propel it to new highs.

As of Friday, XRP is trading at around $2.21, reflecting over a 3% daily gain. This price movement comes in tandem with an 83% surge in daily trading volume, reaching approximately $4.4 billion. The uptick in trading activity indicates heightened interest from both retail and institutional investors.

The overall market capitalization of XRP has also climbed to nearly $128 billion, reinforcing its standing among the top digital assets.

One of the key drivers of the recent XRP rally is increased accumulation by large holders. According to Santiment, wallets holding between 10 million and 100 million XRP now control 12.22% of the supply—up from 10.47% in late February. This 1.75% rise suggests growing confidence among whales that a significant bullish move is imminent.

XRP was trading at around $2.21, up 3.39% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

The derivatives market echoes this sentiment. Open interest in XRP has risen by 2.46%, with options open interest spiking over 20% to reach $1 million. The long-to-short ratio currently stands at 1.0218, signaling a bullish bias among traders.

This data supports the notion that XRP’s current momentum isn’t just speculative—it’s backed by capital flow and strategic positioning.

Related Link: How To Buy Ripple (XRP) Tokens

What’s Next For XRP Price

Technically, XRP is approaching a strong resistance level of $2.21, which is the crossing point of its 50-day and 100-day exponential moving averages (EMAs). Breaking above this level could see it travel to $3—a level not seen since early March.

XRP price could hit the weekly 61.8% Fib level, targeting $3.20-$3.43 following the current bullish momentum. Source: ThatBeardedDude on TradingView

The Relative Strength Index (RSI) has crossed 70 now, generally a bullish sign though sometimes it can also show overbuying.

Then, the SuperTrend indicator shows that the resistance is intact and could mean there is still no strong confirmation required before going the entire distance along the uptrend.

If XRP is reversed at current resistance, the 200-day EMA of $1.99 can serve as a very important support level. Even a sharper correction could see a retest of the low of April at $1.62.

What's More: XRP price is also showing a classic bullish chart pattern, known as the "cup and handle." The pattern is formed by a U-shaped recovery in price, followed by a brief pullback that stalls at the 50-day EMA, creating the "handle" of the pattern.

A breakout from the cup and handle pattern could propel XRP price towards the 61.8% Fibonacci retracement level of the 2020-2021 bull market, which is around $3.20.

However, if the selling pressure intensifies, support levels at $1.62 and the 200-day EMA of $1.99 could provide some cushion for the declines.

Pro Tip: Benzinga does not provide financial advice.

This article was partially written with the aid of artificial intelligence.

Foto Via Canva