3 Factors Driving XRP’s Bullish Momentum: Is it Time to Buy?

XRP Price Around $3.16 as Bullish Momentum with Strong Technical Patterns and Whale Accumulation Spur Growth
3 Factors Driving XRP’s Bullish Momentum: Is it Time to Buy?
Written By:
Pradeep Sharma
Reviewed By:
Sankha Ghosh
Published on

Overview

  • Institutional adoption is rising as Ripple expands blockchain and XRP Ledger tokenization plans.

  • Regulatory clarity in the US boosts investor confidence and market stability for XRP.

  • Price outlook remains positive, with short-term targets of $6–$9 and long-term potential of $10–$15.

XRP, the cryptocurrency associated with Ripple, has been gaining strong attention in the market due to its bullish momentum in recent weeks. The token is trading around $3.10–$3.20, showing higher lows and signaling renewed investor confidence. 

Several factors are driving this positive trend, making traders and investors wonder whether now could be the right time to consider buying XRP.

Strong Technical Patterns and Whale Accumulation

One of the biggest reasons for XRP’s current bullish run comes from its technical structure. Analysts observe that the crypto-coin has been forming higher lows, a sign that buyers are stepping in every time the price dips. The crypto has also recently broken past a key resistance level near $3.23, which many traders see as the beginning of a potential new rally. Moving averages, such as the 21-day Exponential Moving Average (EMA) and the 33-day Simple Moving Average (SMA), are trending upward, confirming that short-term momentum is bullish.

In addition to the technical setup, whale activity is also supporting the rally. When these investors start accumulating tokens, it often signals confidence in future XRP price growth. Recently, blockchain data shows that large XRP holders have been buying more tokens during price dips. This kind of buying activity can create a strong base of support for the token, owing to the fact that whales usually hold for the medium to long term.

Even though the trading volume dipped slightly in the past few days, the overall structure remains bullish as long as the cryptocurrency stays above the $3.05–$3.10 support range. If the price continues to hold these levels, a strong breakout toward the next resistance zone near $3.30–$3.40 is possible.

Also Read: XRP Shows Bullish Trend Again: Will it Hit $9 or $24 Next?

Rising Institutional Adoption and Tokenization Plans

Another major driver of crypto’s recent momentum is growing institutional adoption. Ripple has been actively working to expand the real-world use of its blockchain and token, and these efforts are now beginning to show results.

One of the most significant developments is Ripple’s acquisition of a prime brokerage firm called Hidden Road for $1.25 billion. This move is designed to make the cryptocurrency more accessible to hedge funds and other institutional investors, creating a gateway for larger financial players to enter the XRP market. This is important as institutional money often brings long-term stability and higher liquidity to any cryptocurrency.

In addition, Ripple is preparing to launch its Institutional Tokenization Program on the XRP Ledger (XRPL). This program, scheduled for August 1, 2025, will allow institutions to issue and manage real-world assets like bonds, real estate, or commodities directly on the blockchain. This is a huge step forward. Tokenization is expected to be one of the biggest trends in the global financial system over the next decade. If XRP becomes a preferred network for tokenization, its adoption and price could see a major boost.

Market analysts believe that these initiatives could push XRP’s price much higher. Some forecasts expect short-term targets of $6–$9 in the coming months, with longer-term possibilities of $10–$15 if institutional adoption continues to grow.

Growing Regulatory Clarity in the US

Regulation has always been a critical factor for cryptocurrencies, and for XRP, it has been a central issue for years due to its long-running legal battle with the US Securities and Exchange Commission (SEC).

Recently, XRP received a major boost in confidence when the SEC dropped its appeal in the ongoing case against Ripple. While the company may still face a fine for institutional token sales, the court confirmed that XRP sold on public exchanges is not considered a security. This ruling removes a large part of the uncertainty that has weighed on the token for years.

In addition, the US Congress and Senate are moving toward creating a clear legal framework for digital assets. Proposed bills like the Clarity Act and new rules for stablecoins are part of an effort to provide the crypto market with more structure. Ripple’s CEO has also testified in the Senate, emphasizing the need for supportive regulations to encourage innovation.

This regulatory progress is significant as institutional investors are likely to enter a market when legal risks are reduced. If the US fully clarifies the rules for XRP and other cryptocurrencies, more banks and financial firms could adopt Ripple’s technology, adding further momentum to the cryptocurrency’s bullish trend.

Price Outlook and Market Sentiment

Current market sentiment for XRP is positive, but it comes with the usual risks that all cryptocurrencies face. Analysts believe that if XRP holds above $3.05–$3.10 and breaks above $3.30–$3.40, it could start a strong rally toward $6–$9 in the coming months.

Some experts are even predicting a longer-term price of $10–$15 by late 2025, especially if institutional adoption accelerates and tokenization on XRPL succeeds. On the other hand, a drop below $3.05 could trigger short-term corrections, especially if trading volume continues to decline or if the broader crypto market weakens.

In the short term, traders are watching two important events:

August 1, 2025: Launch of XRP’s Institutional Tokenization Program.

Mid-August 2025: Key court updates that could finalize the Ripple-SEC case.

Positive developments in these areas could drive the next major rally.

Risks and Considerations

Even with the bullish outlook, XRP carries risks that every investor must consider:

Regulatory risk: While recent developments are positive, any unexpected legal actions could impact XRP’s price.

Market volatility: Cryptocurrency markets can swing sharply, and Bitcoin price movements often affect XRP.

Profit-taking by whales: Large holders can trigger sudden corrections if they decide to sell in bulk.

Therefore, timing and risk management are essential for anyone considering entering the market during this rally.

Also Read: XRP vs. Dogecoin: Which Crypto Will Grow Faster in 2025?

Is it the Right Time to Buy XRP?

With the token trading near $3.10–$3.20, short-term traders may wait for a clear breakout above $3.30–$3.40 to confirm a new rally. Long-term investors may see this consolidation as a strategic entry point. The upcoming catalysts in August and the potential for prices to reach $6–$9 in the next few months and $10–$15 over the longer term might solidify this. If bullish momentum continues, XRP could remain one of the most exciting altcoins of all time.

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