July 4, 2025 – XRP, the native token of the Ripple network, is showing strong signs of an impending price rally, driven by a combination of technical indicators, on-chain data, and increasing real-world adoption.
Analysts are pointing to a potential short squeeze and broader market optimism as key catalysts for what could be a significant upward move for XRP in the near term.
XRP’s price action has been consolidating within a descending wedge pattern for months, a formation often associated with explosive breakouts.
According to analyst Mickle, the price chart is displaying a “classic breakout pattern” with converging highs and lows, indicating a tightening range that typically precedes a sharp price movement.
As of today, XRP is trading at approximately $2.21, struggling to break above the $2.30 resistance level that has capped upside attempts since mid-June.
However, the current low-volume environment, paired with an RSI hovering around 51, suggests a “coiled neutrality” that could lead to a surprise breakout.
The liquidation map further supports this bullish outlook.
Data shows significant short exposure stacked above the $2.35 price level, with over $272.3 million in short positions at risk of liquidation if XRP breaks through this key resistance.
A short squeeze could propel prices toward $3.67 or higher, as seen in previous market cycles.
However, NewsBTC claims XRP could hit $50 if Ripple’s banking license proves to be successful.
Guide: Learn how to buy XRP here
On-Chain Metrics: Rising Activity and Adoption
On-chain data is also painting a bullish picture.
Despite a recent dip in active accounts and transaction volume, which some analysts interpret as a short-term bearish signal, the broader trend shows growing engagement.
Ripple’s ongoing developments, including its bid for a U.S. banking license, are fueling optimism.
Analyst Vincent Van Code recently noted that such a license could position XRP for an “epic rally,” potentially driving prices toward $50 in the long term, as it would enhance Ripple’s ability to integrate XRP into mainstream financial systems.
Additionally, Ripple’s stablecoin, RLUSD, has emerged as the fastest-growing stablecoin in the market, contributing to a 9.1% price increase for XRP over the past week.
This surge in adoption underscores XRP’s utility in cross-border payments and decentralized finance (DeFi), further bolstering its bullish case.
The derivatives market is showing significant activity, with open interest in XRP futures and options surging.
This reflects growing trader optimism, as spot buying continues to drive demand while futures traders pile into short positions, potentially setting the stage for a squeeze.
Posts on X highlight this dynamic, with users noting that spot cumulative volume delta (CVD) is soaring, indicating genuine buying pressure, while futures CVD is declining as shorts accumulate.
If spot demand persists, it could trigger a cascade of liquidations, pushing prices higher.
ETF Hype and Regulatory Clarity
Market sentiment is also being shaped by renewed speculation around a potential XRP spot ETF.
Polymarket data indicates a 92% probability of an XRP ETF being approved, which could act as a major catalyst for price appreciation.
Analyst DonAlt has drawn parallels to XRP’s 2017 rally, which saw a 1,200% increase, suggesting that similar market patterns could drive significant gains in 2025.
Furthermore, recent developments in Ripple’s legal battle with the SEC are being interpreted as bullish.
A post on X by @InvestWithD noted that Judge Torres’ denial of a joint motion between Ripple and the SEC could pave the way for long-term clarity, reducing regulatory overhang and boosting investor confidence.
Analysts are eyeing several key price levels in the short term.
A break above $2.35 could trigger a rapid move toward $3, with some projections suggesting a potential climb to $27 if short liquidations cascade.
Conversely, failure to hold the $2.20 support level could lead to a retest of $1.94, though the overall technical and fundamental outlook remains bullish.
With a potent mix of technical breakout signals, strong on-chain fundamentals, and growing trader optimism, XRP appears poised for a significant rally.
While short-term volatility remains a risk, the combination of a potential short squeeze, increasing adoption, and positive regulatory developments positions XRP as one of the most promising assets in the crypto market today.
Investors and traders should closely monitor the $2.30–$2.35 resistance zone for signs of a breakout, as the next few weeks could be pivotal for XRP’s price trajectory.
Also Read: Ripple Now Breaks Free from SEC Restraints
Back to Daily Market News | Daily Crypto News.
Follow Frank Nez on X and Facebook for more community insights.
Also on CoinMarketCap & CoinPedia.
About The Author
