XRP continues to hold steady at $3 over the weekend, while other cryptocurrencies like Ethereum and Binance Coin reach new highs. Analysts believe this calm period may soon end with a sharp rise, supported by ETF optimism, ecosystem growth, and technical signals.
ETF Applications Boost Investor Confidence
Applications for spot XRP ETFs have been filed by ten firms, including Invesco, Franklin Templeton, and Bitwise. Betting platforms Polymarket and Kalshi show that the odds of approval are rising to 85%. Such approval could expand access to XRP for American investors.
The experience with Ethereum ETFs demonstrates the scale of demand. Net inflows to Ethereum-based products have climbed to $12.4 billion, indicating strong interest in altcoin-related funds. Analysts believe XRP could attract similar flows once spot ETFs gain approval.
Meanwhile, the Teucrium XRP ETF has accumulated over $400 million in assets, and the ProShares ETF has crossed $100 million. Despite leveraged products typically seeing lower uptake, these numbers highlight increasing investor participation.
Ripple Ecosystem Growth
Another supportive factor is the Ripple ecosystem, with its stablecoin RLUSD approaching a $700 million asset base and has been featured in the Bullish IPO. It is expected to be utilized in the upcoming Gemini listing as well. Ripple has also confirmed RLUSD's entry into Japan in the first quarter of 2026. The coin's role is likely to expand further with new partnerships.
Data from the past month shows RLUSD's transaction volume is up 15% to $2.7 billion. This momentum has been supported by Ripple’s acquisition of Rail, which strengthens its position in the payment space.
The XRP Ledger is central to Ripple's strategy of building faster and cheaper cross-border payment systems compared to the traditional SWIFT network. With rising stablecoin adoption, the Ledger's role in global transactions could become increasingly relevant.
Technical Signals Point to $5.2
The third reason is that technical charts indicate XRP is forming a bullish flag pattern that often leads to upward breakouts. By measuring the flagpole’s size and projecting it from the breakout point, the estimated target price stands at $4.6. This projection shows notable upside potential from current levels.
The chart also displays a cup-and-handle structure that has been developing since January. With the cup depth at 53%, a breakout would extend the price target toward $5.2. This level would place it roughly 75% above its latest trading value of $3. If technical momentum combines with external catalysts, analysts believe the token could reach new highs in the near term.
XRP holds a significant position at $3, and three key factors—ETF approval, ecosystem growth, and technical signals—create an optimistic outlook for the crypto asset. Investors and analysts will be monitoring developments closely.
