XRP Rally Stalls Below $4: What’s Hindering the Surge?

XRP, the native token of Ripple, has found itself on a promising yet momentarily paused upward journey as it nears the highly anticipated $4 mark. Traders and market watchers have been closely monitoring XRP due to its strong market performance and rising investor optimism. However, recent price activity suggests a phase of stabilization, leading many to question the current barriers to breaking through that next threshold.

After hitting a new all-time high of $3.66, XRP experienced a brief pullback and currently trades at around $3.45. This price range, fluctuating between $3.35 and $3.48, indicates a consolidation zone. While some traders may view this as a setback in momentum, market analysts interpret the formation as a typical “bull flag”—a technical pattern often seen during resting phases in strong uptrends, which may precede another upward breakout.

One contributing factor to the recent surge was the enactment of three pivotal laws in the crypto legislative arena, particularly the CLARITY and GENIUS Acts. These new regulations aim to demystify guidelines for digital assets, providing a more structured and investor-friendly framework that may encourage broader institutional and retail participation in the market.

Another strong catalyst is the increased participation from major financial institutions. The filing of the first-ever XRP futures ETF by ProShares spurred bullish activity. Additionally, 11 other investment groups have submitted proposals for XRP-based financial products. Speculation remains high, with an 88% market expectation of a spot XRP ETF gaining approval by December 2025. Such institutional developments add significant legitimacy and liquidity to XRP’s market standing.

Technically, XRP’s chart structure showcases signs of strength. Analysts have pointed to emerging patterns such as the potential golden cross on the daily chart—an indicator formed when the 50-day moving average crosses above the 200-day moving average, hinting at continued bullish momentum. This sentiment is reinforced by the broader uptick in the altcoin market, as reflected in the Altcoin Season Index, which currently stands at 47. While not yet in full “alt season” territory, it indicates growing investor interest outside of Bitcoin.

Despite the temporarily stagnant price movement, XRP’s pathway to $4 is far from dismissed. Rather, this phase is seen as a healthy pause in its growth trajectory. As long as the price maintains support above $3.34, the bullish outlook remains favorable, and momentum could resume if the asset breaks above the resistance zone of $3.60 to $3.66.

In short, the delay in XRP hitting $4 should not be interpreted as a loss of steam, but rather as a structured consolidation. Influential legal reforms, heightened institutional involvement, and a strengthening technical setup all suggest that XRP could very well breach the $4 threshold in the near future—provided current sentiment and volume continue to support the trend.

For those monitoring the digital currency landscape, XRP remains a focal point, not just for its potential return, but as a representative of evolving regulatory and market structures shaping the future of crypto.

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Courtesy: TradingView

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