XRP Price Forecast: Ripple Targets $3 Rally Amid Bullish Momentum

XRP is showing signs of a potential bullish breakout as Ripple experiences growing investor confidence and favorable technical indicators. The digital asset is regaining upward momentum, aligning with the broader market recovery powered in part by the Federal Reserve’s recent policy stance.

Trading at around $2.19, XRP has climbed over 3% as investors eye a key resistance confluence near $2.21, formed by the 50-day and 100-day Exponential Moving Averages (EMAs). Should the price surpass this level, a push toward the $3.00 threshold—last seen in early March—looks increasingly plausible.

The broader crypto market has also been on a positive trajectory following the Federal Reserve’s decision to keep interest rates steady between 4.24% and 4.5%. While Fed Chair Jerome Powell highlighted the importance of monitoring further economic data before making new policy moves, the crypto sector responded optimistically.

Global digital asset valuations have surged, with leading cryptocurrencies logging solid gains. The total crypto market capitalization soared by 1.2% to $3.175 trillion, a signal of renewed investor enthusiasm. Notably, XRP joined this rally, benefiting from a market-wide risk-on sentiment.

On-chain and derivatives data further validate the bullish outlook for XRP. Derivatives market metrics revealed a 2.46% rise in Open Interest (OI), indicating stronger trader participation and capital influx. Within the last 24 hours, XRP’s options OI jumped 20.45% to reach $1 million, reaffirming growing trader confidence.

The long-to-short ratio sits at 1.0218, suggesting a slight but favorable bias toward long positions. This tilt reflects broader expectations that XRP may soon breach its current resistance levels.

Large-scale investors, typically known as whales, are increasing their XRP holdings—further boosting market sentiment. According to recent data, wallets holding between 10 million and 100 million tokens now account for 12.22% of total supply, up from 10.47% in late February. This accumulation trend signals stronger market conviction and expectations of an imminent XRP breakout.

On the technical front, XRP is closely approaching a descending trendline that has been in play since January. This resistance lies just above the $2.21 confluence point. Confirmation of a breakout here would likely set the stage for the token to retest the psychological $3.00 mark.

Adding to the bullish setup, the Relative Strength Index (RSI) has flipped above the 70 midline, underscoring strong upward momentum. However, traders are also watching the SuperTrend indicator, which currently sits above market price and provides a near-term ceiling. This indicator, derived from the Average True Range, may signal caution should XRP fail to establish a foothold above the EMA barriers.

If rejection occurs near $2.21, downside targets could include the 200-day EMA at $1.99. Beyond that, significant support is identified near the April 7 low of $1.62, which could be visited in a deeper pullback scenario.

Meanwhile, legal uncertainty surrounding Ripple’s ongoing case with the SEC adds an element of complexity. According to prior court findings from July 2023, XRP counts as a security only under specific circumstances, such as institutional or over-the-counter sales. On the retail front, XRP has largely escaped the security label, a development that may favor Ripple’s position in ongoing litigation.

The implications of this ruling are substantial. While parts of the crypto industry see it as a win, particularly for projects distributing tokens via exchanges, it does not definitively settle regulatory boundaries regarding what qualifies as a security. As a result, industry participants continue to operate in a gray area, even as regulatory scrutiny intensifies.

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