XRP Price Holds Above $2 as Market Awaits Breakout, Key Indicators And Will Hidden Road Push XRP To $3?

XRP is currently trading around $2.13, maintaining a solid footing above the $2 psychological threshold despite broader crypto market volatility. Over the past month, the token has been consolidating within a tight range of $2.03 to $2.30, reflecting a period of indecision among traders.

Technical Setup Hints at a Potential Breakout

A closer look at XRP’s 4-hour chart reveals the formation of a falling wedge pattern, a classic technical setup that often precedes an upward breakout. This suggests a bullish scenario could unfold if price action confirms a breakout above resistance.

From April 28 to May 6, XRP established a series of lower highs and lower lows, creating the wedge structure. If the price pushes through the upper boundary of the wedge near $2.14, analysts project a 10% upside move, targeting around $2.36.

Currently, the price is hovering near the 61.8% Fibonacci retracement level at $2.13, which aligns with a crucial demand zone between $2.13 and $2.14.

Short-term momentum indicators are showing mixed signals. The 50 EMA and 200 EMA are on the verge of forming a death cross, typically a bearish signal. Meanwhile, the Relative Strength Index (RSI) is nearing oversold territory, indicating waning bullish momentum.

On-Chain Activity Slows, But Development Accelerates

While price action remains tight, on-chain metrics suggest a dip in user activity. According to Ripple’s Q1 2025 report, new wallet creation and transaction volume on the XRP Ledger have declined by 30–40% compared to the previous quarter.

Data from Santiment indicates that daily active addresses have fallen to roughly 40,000, marking the lowest level since November 2024. This is a sharp decline from the highs of March, when activity soared to 300,000 daily users and peaked at 612,000 on March 19.

Similarly, large transactions exceeding $100,000 have dropped from 1,500 per day in March to about 1,000 daily now. Additionally, DEX trading volume has dipped by 16% quarter-over-quarter.

However, despite this slowdown, developer activity is ramping up. Over the past 30 days, developer contributions to the XRP Ledger have surged by an impressive 196%, signaling strong ongoing efforts to build new protocols and upgrade the network.

Notably, on May 5, two significant projects launched on XRPL:

• Vaultro Finance, a tokenized index fund platform
• XpFinance, a decentralized lending protocol

These additions reflect growing innovation on the XRP Ledger, even amid declining user activity.

RLUSD Stablecoin Fuels Network Growth

Ripple’s RLUSD stablecoin is emerging as a key catalyst for on-chain activity. With a market cap surpassing $90 million and over $300 million in cumulative DEX volume, RLUSD is gaining serious traction.

Ripple aims to position RLUSD as a USD-backed enterprise-grade stablecoin with practical utility in both digital and traditional financial markets. The company plans to leverage RLUSD for cross-margining between asset classes, a move that could set a new standard for stablecoins in institutional finance.

Institutional Momentum and Regulatory Tailwinds

Ripple’s Q1 report also highlighted major institutional and regulatory milestones that could impact XRP’s future price trajectory.

Key developments include:

• Trump’s executive order supporting crypto innovation
• Paul Atkins assumed the role of SEC Chairman
• Bipartisan U.S. support for stablecoin regulations

Institutional demand for XRP is also on the rise. Asset management giant Franklin Templeton has filed for an XRP ETF, while Volatility Shares has submitted applications for three XRP-based ETFs. Brazil's CVM recently approved its own XRP ETF, and CME Group has launched XRP futures, signaling growing mainstream acceptance.

Although XRP investment products saw $37.7 million in weekly outflows, year-to-date inflows sit at $214 million, putting it within striking distance of overtaking Ethereum-based funds globally.

Adding to the bullish narrative, Ripple finalized a $1.25 billion acquisition of Hidden Road, a major global prime broker. This acquisition, one of the largest in the digital asset sector, is expected to bolster Ripple's liquidity infrastructure and support RLUSD’s integration into institutional-grade products.

• What’s Next for XRP?

If market conditions stabilize and XRP manages to break out above the $2.30 resistance, short-term price targets could stretch to $2.50, with more optimistic projections ranging between $2.75 and $3.15.

Still, critical support remains at the 50% Fibonacci level, right at the $2.00 psychological mark. The 200-day EMA at $1.99 is currently the only key moving average providing bullish support, as most short-to-mid-term indicators are trending bearish.

The coming weeks will be pivotal for XRP. Investors are watching to see whether new protocol launches and renewed institutional interest can trigger a breakout and re-ignite upward momentum.