XRP Poised for 48% Surge as Spot ETF Gains Momentum

The focus keyword XRP is once again making headlines as bullish technical formations and regulatory developments signal strong upside potential. With a possible approval of a spot ETF under review, market analysts and technical traders are keeping a close eye on this developing story.

The XRP market is showing signs of bullish reversal, indicated by a technical pattern known as a falling wedge. This formation, often recognized as a precursor to upward momentum, has XRP testing a crucial resistance level. If it successfully breaks through the upper trendline of this wedge, analysts believe the cryptocurrency could rally by as much as 48%, potentially reaching the $3.40 mark.

Technical Signals Suggest Bullish Breakout

Chart analysts are observing XRP’s current price action closely. The falling wedge pattern, formed by two downward-sloping trendlines converging over time, indicates weakening bearish momentum. This setup is traditionally interpreted as a bullish indicator, especially when the price closes near the upper boundary.

At the time of analysis, XRP is testing resistance at $2.42. A confirmed breakout above this level could result in rapid gains, with targets around $3.40. This would represent a 48% increase from its existing level. According to the XRP Price Index, the cryptocurrency needs to hold support at $2.20 to maintain its upward trajectory before challenging overhead resistance between $2.60 and $2.80.

Market momentum appears to be building as the relative strength index (RSI) climbs from a recent low of 31 on April 8 to 47. This rise is a positive signal that buying interest is increasing. Traders and analysts believe a break above the $2.80 resistance level would open the door to even higher valuations, with discussions of new all-time highs becoming increasingly frequent.

One prominent analyst, known pseudonymously as Cryptowzrd, commented that a confirmed breakout from this wedge could see XRP aim for $2.90 in the near term. The analyst also emphasized the significance of sustained volume and support holding firm at current levels.

Spot XRP ETF Under SEC Review

In tandem with bullish chart patterns, regulatory developments are fueling optimism. The U.S. Securities and Exchange Commission (SEC) is currently reviewing an application by the WisdomTree XRP Trust to launch a spot XRP exchange-traded fund (ETF). This signals a potential paradigm shift in the regulatory acceptance of XRP-based investment products.

The SEC’s notice, published on May 27, initiates a structured review period involving a 21-day public comment window and a maximum evaluation period of 240 days. This review aims to assess concerns around investor protection and potential market manipulation.

If approved, this ETF would offer traditional investors a pathway to gain exposure to XRP without needing to manage digital wallets or hold the token directly. The product’s value would be linked to the CME CF Ripple-Dollar Reference Rate, ensuring a consistent valuation index.

Investor sentiment toward the ETF approval is growing increasingly positive. According to prediction market Polymarket, the odds of a spot XRP ETF being greenlighted by the end of 2025 have surged to 84%, up from 63% just a month earlier on April 22.

Further strengthening this view, senior analysts from Bloomberg have projected an 85% probability of approval, especially following a recent leadership change at the SEC. Market commentators believe this leadership transition could signal a favorable regulatory environment for digital assets.

Market expectations are expanding rapidly, with some analysts setting speculative targets between $3 and $8, contingent on institutional adoption. In bolder forecasts, others believe XRP could soar as high as $50 should major asset managers engage in ETF participation.

Related: Expert Advice: Sell XRP If You’re Confused

While these projections remain speculative, the growing convergence of technical bullish patterns and regulatory confidence suggests that XRP is entering a critical phase. Market participants are advised to monitor developments closely as the ETF review progresses, given its potential to reshape XRP’s market landscape.