Ripple Q1 2025: XRP Price Targets $3 Amid Bullish Breakout

XRP price struggles to hold support level at $2.10, but the recently released Q1 report hints at a strong 2025 outlook. A surge in institutional interest towards Ripple products and the end of the SEC case further support the likelihood of significant gains.

As technical analysis shows a bullish breakout from a wedge pattern, will this report trigger an XRP rally to $3?

XRP Price Targets $3 Amid Wedge Breakout

The XRP price trend on the four-hour chart showcases a minor decline from $2.33 to $2.11. This accounts for a 10% drop over the past 7 days. However, XRP price action reveals a falling wedge pattern in motion. This pattern is generally considered to give an upside breakout as the selling pressure diminishes.

Between April 28 to May 6, XRP price action formed two distinctive lower highs and lower lows. Connecting these swing points using trend lines results in a falling wedge setup. This pattern forecasts a 10% rally to $2.36 on a successful breakout above the wedge’s upper trend line at roughly $2.14.

Currently, XRP fluctuates near the 61.80% Fibonacci level at $2.13. Coinciding with the key Fibonacci support, the demand zone extends between $2.13 and $2.14. Due to the short-term decline, the 50 and 200 EMA lines warn of a death cross event in the 4-hour chart. 

Furthermore, the 4-hour RSI line is close to hitting the oversold boundary level. This reflects the short-term decline in bullish momentum, leading to the negative cycle within the wedge pattern. 

In case of a bullish breakout, once the broader market stabilizes, the Fibonacci levels paint a short-term price target near the $2.50 psychological level. In an optimistic case, the Fibonacci levels extend the price target from $2.75 to $3.15. 

On the flip side, the crucial support below the wedge pattern remains the 50% Fibonacci level, coinciding with the $2 psychological mark.

Ripple’s XRP Q1 2025 Market Report

As the XRP price holds above the $2 mark, Ripple recently dropped the Q1 2025 XRP markets report. With multiple key developments in Q1 2025, the report highlights key wins for Ripple’s XRP.

The report highlights the Q1 2025 optimism fueled by positive developments by the U.S. administration. The key milestones highlighted in the report are Trump’s executive order to support crypto, Paul Atkins becoming the SEC chairman, and the bipartisan support for stablecoins.

Starting with institutional support, Franklin Templeton has filed an S-1 form for an XRP-based ETF and the Volatility Shares filing for three XRP ETFs. Furthermore, Brazil’s CVM has approved a dedicated XRP ETF, while CME Group has launched the XRP Futures. 

Overall, the XRP investment products saw $37.7 million in weekly outflows, driving the year-to-date inflow to $214 million. The XRP investment product is just $1 million away from overtaking the global Ethereum funds.

Ripple’s XRP Ledger Cools Down in Q1

The on-chain data witnesses a cool-down phase in Q1 2025, a 30-40% decline in both new wallet creation and overall transaction volume on the XRP ledger. Notably, the DEX volume has decreased by 16% on a quarter-to-quarter basis. 

Interestingly, Ripple’s stablecoin RLUSD has emerged as one of the key on-chain activity drivers. Its market cap surpassed $90 million, and it has recorded a cumulative DEX volume of more than $300 million.

Ripple’s $1.25 Billion Acquisition of Hidden Road

Additionally, the report boasts of Ripple’s acquisition of Hidden Road, one of the fastest-growing prime brokers in the world. This marks one of the largest acquisition deals in the digital assets space for $1.25 billion. 

With the deal, Ripple aims to market its RLUSD stablecoin as an enterprise-grade USD-backed stablecoin with real-world utility. The company will likely leverage its collateral across prime brokerage products. This could make RLUSD the first stablecoin to enable cross-margining between the digital asset space and traditional markets. 

Is XRP Price Primed to Reclaim $3?

With growing institutional adoption and primed to potentially bridge the digital asset and traditional market space, Ripple’s XRP might soon take off. Based on the price analysis, the wedge breakout rally could result in a bull run to $3 if the broader market remains stable.