Three signs that the price of XRP will soon break out after 4 months of consolidation

The price of XRP has maintained stability within the range of $2 to $2.6 since the beginning of March without a clear trend. However, some factors are gradually indicating that this “stagnation” may soon give way to a strong breakout, potentially even rising to a double-digit price.

Daily chart XRP/USD | Source: TradingView## Ripple and ecosystem expansion strategies

Ripple’s strategic moves to expand its ecosystem are creating momentum for the potential breakout of XRP’s price. Recently, the company acquired Hidden Road – a major brokerage firm – for up to $1.25 billion, reinforcing its ambition to expand its institutional market. Ripple will also use its stablecoin RLUSD as collateral for the entire brokerage service of Hidden Road.

David Schwartz, the Chief Technology Officer of Ripple, shared that the company will continue to pursue many other acquisition deals in the near future.

“Our M&A team is very busy. We are pursuing many deals, from the initial stage to the final transactions.”

Ripple is currently targeting traditional financial companies, and two notable names on this list are Metaco and Standard Custody.

Ripple buybacks since 2013 | Source: MessariRipple also plans to upgrade its XRPL blockchain network, particularly in enhancing its “programmatic” capabilities and deploying a new lending protocol. Recent collaboration with Wormhole aims to expand multi-chain interoperability on the XRP Ledger (XRPL) and the upcoming launch of the XRPL EVM sidechain further enhances this development potential.

These upgrades, similar to the development process of Ethereum, promise to help XRP expand its cross-border payment capabilities and applications in DeFi, thereby stimulating demand and driving the value of XRP higher.

Enhance exposure to CME’s XRP futures contracts

The increasing exposure to CME’s XRP futures contracts is opening up strong breakout opportunities for XRP’s price, thanks to the growing participation of institutions and the increasing liquidity of the market.

According to the latest report from CME Group, since its launch on May 19, XRP futures contracts – both standard and micro – have recorded a notional trading volume exceeding $542.8 million, reflecting strong demand from both large institutions and individual investors.

“The launch of the XRP futures contract has quickly attracted strong interest from the market, with diverse participation from various types of organizations,” CME said.

On the first day, the trading volume reached 19.3 million USD, with the participation of 15 companies and 4 retail trading platforms. This clearly indicates a strong and evident demand for this product.

XRP futures trading activity in one month | Source: CME GroupAdditionally, over 24,600 contracts were exchanged in the first trading month, with nearly 50% of participants coming from countries outside the United States, demonstrating the globalization of interest in XRP.

In addition, the ability to approve the spot ETF for XRP will be an important boost, attracting more investment into XRP financial products, thereby strengthening XRP’s position as a mainstream asset and pushing its value even higher.

The odds for the approval of the XRP ETF before December 31 currently stand at 76% on Polymarket, creating strong expectations for the subsequent growth of XRP.

Potential breakout

According to an assessment from cryptocurrency analyst XForceGlobal, the price of XRP may be preparing for a strong breakout.

This analyst shared on X that the recent pullback to the $1.90 level “has set the stage for a rapid bullish trajectory,” while emphasizing that the price has retested the important Fibonacci level of 0.618 at around $2.00. According to Elliott wave analysis, this breakout could push the price of XRP to $5 in the near future.

Previously, XForceGlobal set a price target for XRP in this cycle ranging from 20 to 30 USD. This aligns with Egrag Crypto’s analysis, which suggests that Fibonacci extension levels around a symmetrical triangle predict the price of XRP could reach between 8 and 27 USD.

The breakout from the bullish flag pattern could drive the next price surge for XRP, with the price target forecasted to reach 14 USD, equivalent to an increase of up to 564% from the current price.

XRP/USD Weekly Chart | Source: TradingViewThe next major price increase for XRP could begin when buyers push the price above the 2.65 USD (upper limit of the current consolidation range), paving the way for the next price level of 3 USD and beyond.

Itadori