XRP is emitting strong technical and on-chain signals, indicating the potential for a significant price increase in the future. According to analysis, the breakout from a multi-year triangle pattern in November 2024 sets a price target for XRP at $12.60. This long-term breakout aligns with several current factors supporting upward momentum.
Technical Indicators Suggest Continuation of Breakout
XRP has formed a cup-and-handle pattern on the daily chart since January, with the upper boundary at $3.40 and the lower point at $1.6135. The handle phase currently has an inverted head-and-shoulders pattern, and the price is above the 50-day and 100-day EMA. Traders are closely monitoring the resistance level at $3.65, as breaking through this level could pave the way for $5 and beyond.
Expansion of the XRP Ledger and Growth of Stablecoin
The total value locked in the XRP Ledger has increased by 16% over the past month, reaching $85 million. Stablecoin activity has also risen, with total holdings exceeding $167 million. Ripple USD (RLUSD) leads this sector, and by 2025, its supply is expected to reach $642 million.
Ripple is believed to drive this development by bringing Hidden Road transactions into the ledger and utilizing the Rail acquisition to bolster its stablecoin strategy.
ETF Approval Could Attract Investment Capital from Institutions
Market participants are also anticipating that the Securities and Exchange Commission (SEC) may approve several spot XRP exchange-traded funds. Under the leadership of chairman Paul Atkins, a cryptocurrency advocate, this regulatory body is reviewing several applications.
Leveraged XRP ETFs are currently managing millions in assets at ProShares and Teucrium, increasing demand for spot ETFs even further.
Recent Price Volatility Indicates Growth Momentum
According to data from CoinMarketCap, XRP has increased by 11.26% over the past week and is currently trading at $3.28. This price surge began on August 8, when the price spiked over $3.20 after rising from $2.94.
Since then, XRP has traded above $3.10 despite minor corrections. Trading volume has also increased by 10.15% to $9.16 billion, with market capitalization rising by 4.55% to $194.64 billion, indicating strong market interest.
The multi-year breakout target has been validated, and the technical structure and increasingly robust network fundamentals are creating a strong argument for justifying higher XRP prices. A decisive move above $3.65 will confirm the next bullish phase.