In recent days, XRP $XRP , Ripple's native token, has shown signs of profit-taking after a significant rally that attracted the attention of investors and traders . Despite this temporary slowdown, several fundamental and technical factors suggest that XRP's positive trend may not be over .

In this article, we analyze four key reasons why the token's bullish potential remains intact , offering in-depth insight into what to expect in the coming months. XRP is currently trading around $3.47, up 18.47% from a week ago.

1. Solid technical basis and key support levels

Following the recent peak, XRP has experienced a consolidation phase with profit-taking, however, these occurred near key technical support levels . Technical analysis shows that XRP continues to hold above long-term support levels, such as the 50-day moving average and some historical demand zones that have proven to hold during previous corrections.

This healthy technical structure is a positive sign for traders because it indicates that, despite short-term selling, the downward pressure is not enough to trigger a broader decline . In many cases, these pauses represent opportunities to accumulate additional positions in anticipation of a new bullish push.

2. Progress in SEC litigation

One of the most significant developments for XRP's future concerns the outcome of the long-running legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) . Recent developments have shown encouraging signs for Ripple, with the court dismissing some of the SEC's claims, leading to a surge in investor confidence.

A positive outcome, or at least a favorable resolution, could pave the way for greater adoption of XRP in regulated markets, attracting new capital and further supporting the token's price. This plays a crucial role in solidifying Ripple's long-term prospects.

3. Growing adoption and strategic partnerships

Ripple has continued to expand its partner network in the financial services and international remittances industries, key sectors where XRP is used as a tool to speed up and reduce the costs of cross-border transactions.

Partnerships with banking institutions, fintechs, and payment companies in various regions of the world have created real, tangible demand for XRP, supporting its practical use beyond simple market speculation.

Since the beginning of the year, Ripple has become the first blockchain-based payment service provider authorized by the Dubai Financial Services Authority (DFSA) , thus solidifying its presence in the United Arab Emirates.

The company has also signed strategic partnerships with Zand Bank and Mamo , while its stablecoin RLUSD has received official recognition from the DFSA for use within the Dubai International Financial Centre (DIFC) . Ripple currently holds over 60 regulatory licenses globally.

Increasing functional adoption is one element that can fuel sustainable price growth in the medium to long term.

4. Market sentiment and on-chain dynamics

Analysis of on-chain metrics shows an increase in active address activity and an increase in transaction volume on the XRP Ledger . These indicators suggest growing interest from the community and investors, a signal that often heralds significant price movements.

Furthermore, overall sentiment in the cryptocurrency market is becoming more favorable, with renewed interest in assets with solid fundamentals like XRP. The involvement of institutional investors and large industry players could further strengthen the bullish momentum.

Conclusions

Despite the profit-taking that often characterizes rallies, XRP maintains significant potential thanks to solid fundamentals, legal progress, strategic partnerships, and encouraging technical signals.

For investors looking beyond the short term , these four reasons are a valid reason not to underestimate the possibility of further increases for the Ripple token. As always, it's important to monitor market developments carefully, but the outlook for XRP still appears promising.

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