Key Insights
- XRP price tests $2.42 resistance in a bullish falling wedge, aiming for a 48% gain to $3.40.
- XRP ETF approval odds rise to 84%, boosting institutional interest and price potential.
- Despite short-term bearish MACD, XRP’s RSI and volume signal growing buying momentum.
XRP’s price action is drawing attention as several technical signals suggest a possible rally toward $12. The cryptocurrency is approaching critical levels that could trigger strong buying momentum.
Traders and analysts are watching chart patterns and market activity closely, looking for signs that XRP can break out from its recent consolidation and push higher.
Technical Setup Shows Potential for Breakout for the XRP Price
XRP is currently testing the upper boundary of a falling wedge pattern, a chart formation often associated with bullish reversals.
This pattern forms as two trend lines converge, connecting lower highs and lower lows, which indicates weakening selling pressure. The resistance near $2.42 is key, as a break above this level could lead to a rapid price increase.
The relative strength index (RSI) has risen from oversold levels near 31 to 47, suggesting growing bullish momentum.
However, XRP needs to maintain support at $2.20 and clear resistance zones between $2.60 and $2.80 to confirm the strength of the upward move. If these levels hold, traders may see the price target around $3.40, which represents a 48% increase from current prices.
A pseudonymous trader known as Cryptowzrd noted, “$XRP closed indecisively and is still maintaining a falling wedge formation.” The trader added, “A breakout of this wedge will push markets toward the $2.80 resistance. Above that resistance, we will eventually get to a new all-time high.”
Market Indicators Reflect Mixed but Optimistic Sentiment
On a short-term basis, XRP shows signs of bearish momentum. The MACD line is below the signal line, and the RSI near 34 indicates the price may be close to an oversold condition. Despite this, trading volume has increased by over 35%, which signals strong market activity and could precede a price reversal.
Open interest in futures has declined by 10%, suggesting some traders are closing positions, while options volume rose by 22.57%, indicating growing interest in options markets.
The long/short ratio varies by platform, with Binance showing a strong preference for long positions at 3.31 and OKX at 2.47. This reflects confidence among many traders that XRP will gain value.
Source: CoinGlass
Liquidations show a large number of long positions were closed in the last 24 hours, but the dominant sentiment remains bullish. Long liquidations totaled nearly $29 million while shorts accounted for under $400,000, suggesting some profit-taking but continued optimism in overall market direction.
Spot XRP ETF Review Could Influence Price Action
The U.S. Securities and Exchange Commission (SEC) has started reviewing the spot XRP ETF application filed by WisdomTree XRP Trust. The review period includes a 21-day public comment phase and a 240-day timeline for the decision. Approval of this ETF would allow investors to gain exposure to XRP without holding the asset directly.
The ETF would track XRP through the CME CF Ripple-Dollar Reference Rate, offering a regulated product for institutional and retail investors. Polymarket currently places the odds of approval by the end of 2025 at 84%, an increase from 63% in late April. Bloomberg ETF analysts also predict an 85% chance of approval after changes in SEC leadership.
If approved, the ETF could unlock large institutional capital, potentially pushing XRP’s price higher. Some market experts suggest prices could rise to $3-$8 initially, with longer-term estimates reaching up to $50 if major asset managers participate.
Long-Term Chart Patterns Suggest Strong Growth Potential for XRP Price
According to the weekly XRP/USD graph, the cryptocurrency has finally ended its long period of unchanging prices. Economic history shows that after a major resistance level was breached, prices jumped sharply. A recent break above the descending resistance line could show the start of a new upward trend.
After breaking out and returning to test the same level, XRP now trades a little bit over $2.38. If we look at historical trends such happenings come before long, strong rallies. Analysts expect prices may increase past $40 due to the data.
According to analysts, XRP is entering a period that could lead to impressive gains. With new releases, higher trading activity and raised interest, this combination forms the basis for an expected rally potentially reaching $12 or more in the coming months.
