XRP Price Targets $3 After Wedge Breakout

Jakarta, Pintu News – As interest from large institutions grows and the case with the SEC has come to an end, the possibility of a significant price increase for Ripple’s (CRYPTO: XRP) XRP token is becoming more apparent.

With technical analysis showing a bullish breakout from a wedge pattern, could this report spark an XRP rally towards $3?

XRP Price Targets $3 After Wedge Breakout

On the four-hour chart, the price movements of XRP have shown a slight decrease from $2.33 to $2.11, which marks a 10% decline over the last seven days.

However, the price action on XRP has displayed a falling wedge pattern, which is generally recognized to provide an upward breakout as the selling pressure lessens.

Between April 28 to May 6, the price movements of XRP formed two lower highs and lower lows. Connecting these swing points with the trend line resulted in a falling wedge setup. This pattern predicts a 10% rally towards $2.36 after a successful breakout above the upper trendline of the wedge around $2.14.

Currently, the price of XRP is fluctuating slightly above the 61.80% Fibonacci level at $2.13. In accordance with the crucial Fibonacci support level, the demand zone ranges between $2.13 and $2.14.

Due to the short-term decline, the 50 and 200 EMA lines are showing a possibility of a death cross on the 4-hour chart.

Moreover, the 4-hour RSI line is approaching the oversold limit. This indicates a short-term decrease in bullish momentum, which aligns negatively with the cycle in the wedge pattern.

In the event of a bullish breakout and assuming the market experiences overall stability, the Fibonacci levels indicate a short-term price target around the psychological level of $2.50. In a more optimistic scenario, the Fibonacci levels place the price target at $2.75 or even $3.15.

Conversely, the main support below the wedge pattern is at the 50% Fibonacci level, which coincides with the $2 psychological level.

Ripple Q1 2025 XRP Market Report

As the price of XRP remains above the $2 level, Ripple recently released its Q1 2025 XRP market report. Featuring many interesting developments in Q1 2025, the report highlights several important milestones for Ripple’s XRP.

The report highlights Q1 2025 optimism fueled by positive developments from the U.S. government. Some of the key milestones highlighted in the report include Trump’s executive order in support of crypto, Paul Atkins becoming SEC chairman, and bipartisan support for stablecoins.

Starting with institutional support, Franklin Templeton has filed an S-1 form for an XRP-based ETF, as well as Volatility Shares filing three XRP ETFs. Additionally, Brazil’s CVM has approved a dedicated XRP ETF, while CME Group launched XRP Futures.

Overall, XRP investment products recorded weekly outflows of $37.7 million, which pushed the total inflows for the year to $214 million. XRP investment products are now only $1 million away from beating the global Ethereum fund.

XRP Ledger Slows in Q1

On-chain data shows a cooling phase in Q1 2025, with a 30-40% drop in both new wallet creation and overall transaction volume on the XRP Ledger. In particular, DEX volumes saw a 16% decrease compared to the previous quarter.

Interestingly, Ripple’s stablecoin, RLUSD, is emerging as one of the key drivers of on-chain activity. Its market capitalization has surpassed $90 million, and it recorded cumulative DEX volume of over $300 million.

Read also: 3 Crypto to Hunt After Donald Trump Calls Crypto Stronger than US Stock Market!

Ripple’s $1.25 Billion Acquisition of Hidden Road

Moreover, the report also highlights Ripple’s acquisition of Hidden Road, one of the fastest-growing prime brokers in the world. This acquisition became one of the largest acquisition deals in the digital asset space worth $1.25 billion.

With this deal, Ripple aims to market the RLUSD stablecoin as a readily available USD-based stablecoin for companies with real-world utility.

The company will most likely utilize its collateral for prime brokerage products. This could make RLUSD the first stablecoin to enable cross-margining between the digital asset space and traditional markets.

With growing interest from large institutions and the potential to serve as a bridge between the digital asset space and traditional markets, the possibility of a price increase for Ripple’s XRP token is becoming more apparent.

According to price analysis, the breakout rally from the wedge pattern could lead to a surge towards the $3 mark if the market experiences stability in the short term.