XRP Targets $4 As Markets Are Bullish On ETF Approvals And Institutional Adoption, But Current Bull Cycle Feared To Have Peaked

XRP has regained market momentum as investors are optimistic about potential spot XRP ETF approvals in the United States, and the token’s issuer, Ripple, has finally ended its long-running lawsuit with the US Securities and Exchange Commission (SEC).

Bitget Wallet’s chief marketing officer, Jamie Elkaleh, suggested that investors’ confidence in XRP has improved since its partial legal victory against the securities regulator back in March and increasing legal clarity surrounding crypto assets in the United States, which essentially paved the way for the launch of XRP futures-based products like the ProShares UXRP fund. According to the analyst, this has fueled speculation surrounding an ETF tracking the spot market performance of the third-largest cryptocurrency by market capitalization.

Analyst Highlights Positive Sentiment Surrounding XRP as Potential ETF Approval

Elkaleh said that the positive shift in investor sentiment has boosted XRP’s market depth and signals a structural step forward for its legitimacy in the US financial markets. That narrative helped XRP briefly break above $3.60 last week before retracing to $3.09 after $105 million worth of XRP futures long positions were liquidated, and Ripple co-founder Chris Larsen controversially sold $175 million worth of coins.

Despite the volatility, analysts remain constructive on XRP’s long-term prospects. Ryan Lee, a chief analyst at Bitget, said that renewed ETF speculation and increased legal clarity are acting as significant price catalysts driving the token towards the $3 mark, and with increased momentum, it could even target a valuation between $3.50 and $4 in the coming weeks.

Currently, XRP-backed ETFs are limited to futures products, but analysts believe that any progress made surrounding spot XRP ETF applications could drive a second wave of inflows, especially if the SEC maintains its pro-crypto and softened posture following the court ruling in March.

Digital asset manager and crypto ETF issuer Grayscale recently received a green light from the SEC to include XRP in its Digital Large Cap Fund, which provides exposure to five cryptocurrencies with the highest valuations. 10 XRP spot ETF proposals are currently pending approval, with a final decision expected in October. Traders believe the funds’ launch would unlock billions of dollars in capital inflows into XRP.

Meanwhile, Ripple is pursuing a US national trust bank charter to operate as a non-lending banking institution to handle the assets backing its RLUSD stablecoin. The company’s On-Demand Liquidity (ODL) platform, which has been rebranded as Ripple Payments, is targeting 10% of the SWIFT network’s $150 trillion annual transaction volume for cross-border settlements. The protocol, which uses XRP as a bridge asset, could be widely adopted by global banks due to its promise of instant transaction finality and low cost.

‘Steph Is Crypto’ Draws Similarities Between 2017 and 2025 Rally, Warning XRP’s Price May Have Peaked This Cycle

Prominent crypto analyst “Steph is Crypto” published a chart-based analysis that suggests XRP may currently be in the final stage of its upward trend. Using a two-month candlestick pattern, he drew parallels between the asset’s 2017 and 2025 price trajectories, with the current XRP chart structure mirroring the accumulation and breakout trends observed prior to its rally in 2017.

Eight years ago, XRP had a prolonged accumulation phase followed by a steep price increase, and that trend has repeated this year. In 2025, the chart is enclosed in a shaded rectangle pattern, which is similar to 2017, underscoring the analogy between the two bullish cycles. While both phases are distinct, they share a similar structure, with the analyst highlighting that this year’s bull market has reached its final leg.

XRP’s technical indicators further support this notion, with the Stochastic Relative Strength Index (Stoch RSI) for the cryptocurrency hitting its maximum level of 100, crossing into the overbought zone. This reading is similar to the peak levels observed during the 2017 rally, indicating that XRP may be nearing a critical turning point in its price. The analyst also pointed out that the cryptocurrency has only reached overbought conditions a few times since its launch in 2014.

XRP Could Target $4.47 in the Short-Term and $8 in the Long Run

While Steph Is Crypto did not explicitly predict a XRP price reversal, the similarities between the chart patterns and technical indicators from 2017 and 2025 suggest that there is limited upside potential in the current cycle. He has asked traders and investors to remain vigilant and adjust their strategies to account for diminishing risk-reward ratios.

XRP is positioned for further upside, and traders should focus on the $2.84 support and the $3.10-$3.40 breakout zones, with an upside risk extending towards the $4.47 mark. Long-term holders focusing on real-world utility for the token should keep an eye on the $8 target.

At the time of writing, XRP is trading at $3.18, up 1.29% in the last 24 hours.