3 factors that could spark breakout

XRP holds steady as the crypto market recovers, raising the question of whether its recent strength can turn into a lasting breakout.

XRP is consolidating near the $2.50 mark as bullish momentum returns to the broader crypto market. Per market data from crypto.news, the fifth-largest crypto is trading at $2.47 at press time, up 5.3% in the past 24 hours.

The uptick comes as overall market sentiment improves, with several major assets rebounding after a volatile week. With momentum returning, the question now is whether XRP’s recent strength can turn into a sustained breakout, a move that may hinge on a few key developments.

Ripple ETF approval 

One major factor that could trigger the next XRP (XRP) price surge is the approval of a Ripple ETF. The U.S. Securities and Exchange Commission (SEC) is expected to make decisions on several ETF proposals this month. Decisions on Grayscale and 21Shares filings due on Oct. 18 and 19 are still pending, possibly delayed by the U.S. government shutdown. 

Still, new applications like Volatility Shares’ 3x and 5x leveraged XRP ETF filings suggest growing institutional interest. Bitwise’s ETF application is due Oct. 20, with others from Franklin Templeton, Canary Capital, and WisdomTree later in the month. A positive verdict could improve sentiment, drive major inflows, and propel XRP price to new levels.

Treasury bids could fuel XRP price boost 

Apart from ETFs, institutional interest in a Ripple-focused treasury is rising. A recent report revealed that Ripple Labs is spearheading a $1 billion fundraise to build an XRP treasury through a special purpose acquisition company (SPAC). 

This effort, backed in part by Ripple’s own XRP holdings, could spark increased demand from institutional buyers. The news also follows Ripple’s recent acquisition of GTreasury, signaling deeper integration of XRP in corporate financial systems and growing confidence in the token’s long-term potential.

Technical indicators signal bullish activity

From a technical perspective, XRP is showing early signs of a trend reversal. The Relative Strength Index (RSI) has climbed to 41.32, rising above its moving average of 36.41. While still below the key 50 level, this suggests waning bearish pressure.

While MACD remains negative, its histogram bars are shrinking. This indicates that bearish momentum is weakening and a bullish crossover could form if the current price strength persists. 

XRP price currently holds support at $2.30, with a decisive move above $2.50 likely opening the path to $2.70 and possibly $3.00. With institutional demand rising and key technicals aligning, the token could be primed for a breakout if momentum holds.