XRP has been in a cooling-off phase, dropping 13% from its year-to-date high. But beneath the short-term weakness, the technical and fundamental picture is pointing to something bigger a potential breakout that could send the token toward $5.
Cup-and-Handle Pattern Signals Strength
Since January, XRP’s daily chart has been shaping a cup-and-handle pattern, one of the most bullish setups in technical analysis. The “cup” tops out at $3.40 and bottoms at $1.6135 (the February low). That portion is now complete, and XRP has entered the “handle” phase.
Inside that handle, a smaller inverse head-and-shoulders pattern has emerged another bullish sign. On top of that, XRP has held above both the 50-day and 100-day EMAs, showing that buyers remain in control.
Adding to the case, XRP has rebounded from a major support/resistance level on the Murrey Math Lines, increasing the odds of a breakout. If price clears the YTD high of $3.65, the next target could be the psychological $5 level. The bullish case would weaken only if XRP slips below $2.73.
XRP Ledger Growth Adds Fundamental Fuel
It’s not just the chart looking good the XRP Ledger itself is gaining momentum.
- Total value locked (TVL) is up 16% in the last 30 days, reaching $85 million.
- Stablecoin holdings on the network have surged past $167 million, led by Ripple USD (RLUSD), whose supply has grown to $642 million this year.
Future growth could accelerate with Ripple bringing Hidden Road transactions onto the ledger and leveraging its Rail acquisition to expand its stablecoin strategy.
Possible ETF Approval Could Be a Game-Changer
Another potential catalyst? The SEC, now led by pro-crypto chair Paul Atkins, may greenlight several pending XRP ETF applications. If approved, this could trigger billions in inflows later this year or in 2025.
Spot ETFs, in particular, could see the strongest demand as shown by the modest but steady growth of already-approved XRP ETFs from ProShares and Teucrium.
Bottom line: If XRP holds key support, breaks above $3.65, and fundamentals continue to strengthen, the road to $5 could be wide open.
