XRP's Potential to Reach $5: Cup and Handle Breakout and ETF Application Stir Interest
The cryptocurrency market is currently experiencing a wave of volatility, with key Federal Reserve speeches and economic data playing a significant role. Amidst this turbulence, one digital asset, XRP, is making strides forward.
XRP, the fourth-largest cryptocurrency by market cap, has seen a surge in value, reaching $3.18 on July 25. This increase in price came with a net long position of $704,000 and total short positions at $1.35 million, indicating a bullish sentiment among some investors.
The positive momentum for XRP is not just a temporary surge. A legal roadmap is in place, leading towards a potential official classification of XRP as a non-security by Q4 2025. This roadmap includes a memo filing phase in July, public confirmation in August, and the signing of the Clarity Act by Q4 2025.
The legal progress of XRP is not the only factor contributing to its growth. XRP's practical use in business functions, such as in Wellgistics' treasury, payments, and lending operations, reinforces its growing presence in financial applications. In fact, Wellgistics Health, a Nasdaq-listed company, has allocated $50 million for XRP infrastructure development.
However, not all news surrounding XRP is positive. Former SEC official Marc Fagel has criticised Wellgistics' financials, while others like Bill Morgan have emphasised its practical use.
Looking ahead, the company Grayscale has applied for approval to convert its XRP Trust into a fully regulated spot XRP ETF. If approved, this could catalyze a significant institutional liquidity injection. The SEC's decision deadline for XRP-spot ETFs is expected by October 2025, with Ripple CEO Brad Garlinghouse expressing confidence in the imminent approval of an XRP spot ETF.
Other digital assets are also making headlines. Cardano ($ADA) has broken out, potentially targeting $0.92. Solana has surged above its $230 support level, aiming for a bullish breakout potentially extending to $1314.
Meanwhile, BONK is poised for an explosive rally, aligning with ETF and Solana tailwinds. On the other hand, WLFI has crashed below $0.20, with a potential next target at $0.10.
The Stellar Foundation has invested in Archax to boost tokenization, with XLM facing resistance at $0.45. FLAMGP has also released a Fleet Miner, transforming XRP, BTC, and ETH from passive holdings to active operations.
A dozen XRP ETFs, including offerings from Bitwise, Grayscale, and Franklin Templeton, are awaiting SEC decisions, with a combined proposed assets under management exceeding $1.5 trillion. By September 2025, XRP could receive official classification as a non-security.
XRP has also confirmed a bullish cup and handle breakout, with upside projections potentially extending beyond $5. A 40x short whale is facing losses of $43.4 million in Bitcoin, further indicating a bullish sentiment for XRP.
In conclusion, the crypto market is experiencing volatility, but XRP is making significant strides forward. With a potential legal classification as a non-security, the activation of XRP index and spot ETFs, and growing institutional interest, XRP could be poised for a significant rally in the coming months.
