XRP price review: from consolidation to breakthrough

Figure:https://www.gate.io/trade/XRP_USDT

Since early 2025, the XRP price has been repeatedly blocked at the $2 mark, fluctuating in the range of $1.70 to $2.10 for a long time. It wasn’t until early May when Ripple reached a settlement with the SEC and Bitcoin broke through the $100,000 mark that XRP began to break through the consolidation range strongly, reaching a high of $2.58 and currently stabilizing around $2.54.

This breakthrough is not only the release of technical form, but also reflects the change in market risk preference, marking the reversion of XRP to mainstream trading logic.

Three major reasons for capital inflow into XRP in the market

According to CoinGlass data, the open interest of XRP contracts increased by more than 22% in the past week, while spot trading volume broke through $2 billion for 3 consecutive days. The following are the main reasons for the influx of funds:

1. Policy bearish clearance, reduced risk premium
   After the SEC case landed, XRP price no longer bears heavy uncertainty, and funds are reallocating into the market.
2. Bullish in the medium to long term technically
   Breaking through the consolidation range of three months, attracting a large number of trend traders to position.
3. Significant liquidity advantage
   XRP is listed on most mainstream exchanges, with a rich variety of trading pairs, making it a “bridge asset” for funds to enter the bull run early on.

The capital inflow is not a short-term speculation, but is based on the foundation of “value reassessment”.

The spillover effect of the SEC settlement

Ripple’s $50 million settlement with the SEC is not only directly bullish for XRP, but also sends an important signal to the market:

• Regulatory logic change: The new SEC clearly adopts a more pragmatic strategy, which is beneficial for the compliance process of the entire cryptocurrency industry.
• Historical burden cleared: XRP price can break free from regulatory shadows and re-engage in mainstream trading as a “normal asset”.
• On-chain activity picking up: Bulk transfer frequency on the Ripple network is rebounding, with some funds testing cross-border operations via XRP.

This series of positive signals is driving XRP to become a short-term hot topic.

Observation of the linkage between XRP and other mainstream coins

The current market is in a structure where Bitcoin leads the rise, and altcoins rotate. The linkage effect of XRP with mainstream currencies such as ETH, SOL is as follows:

• Positive correlation strengthening: XRP and ETH have a correlation index of 0.82 in the past 7 days, showing a trend of rising and falling together.
• Sector rotation leading indicator: XRP usually serves as an early launch coin in sector rotation, attracting attention from ‘leading speculative’ funds.
• Relative Strength Index: In terms of the 30-day increase, XRP outperforms LTC, ADA, and other old altcoins, indicating an increase in fund preference.

Investors can observe the performance of XRP price in conjunction with other currencies to grasp the market rotation rhythm.

Outlook: Is $3 the end or the beginning?

Currently, the XRP price is facing a key resistance zone: the $2.70-2.80 area is the former high pressure zone, and breaking through will open up space towards $3.00. Once there is a breakthrough with large volume, it will form a typical “bull flag” pattern, with a theoretical target above $3.20.

But also need to be alert to the following risks:

• Short-term pullback pressure: the current gains are relatively large, and some profit-taking may occur.
• External disturbances: such as delays or setbacks in the court’s settlement process with the SEC, or a tighter monetary policy by the Federal Reserve.
• Technical indicator divergence: MACD and RSI indicators, if there is a bearish divergence, may indicate the need for short-term adjustment.

Risk Warning: The cryptocurrency market is highly volatile, and investment should be cautious, avoiding blindly chasing highs.

Overall, if the XRP price can stabilize above $2.40, it is expected to usher in a new breakthrough at the end of Q2.