Ripple (XRP) Soars: Can It Finally Break Resistance and Hit $3.40?

The digital asset is trading near $2.73 after a 12.7% increase in the last 24 hours. With crucial resistance levels at $2.75 and $3.40, market analysts believe a breakthrough could trigger a larger rally.

Crypto strategist Egrag Crypto highlights that XRP recently formed an ‘M’ pattern at $1.77, typically signaling a bearish target of $2.21. However, he cautions that such patterns may not fully account for external market forces. “Market makers can manipulate liquidity and price movements, making technical patterns less reliable,” he explained.

XRP aims for $3.40, with a breakout above this level crucial for a potential all-time high. Source: EGRAG Crypto via X

For XRP to sustain its bullish trajectory, it must maintain a position above $2.75. A successful breakout above $3.40 could attract more investors and further solidify the ongoing rally.

Market makers play a crucial role in cryptocurrency trading, providing liquidity and influencing price volatility. According to Egrag Crypto, these entities use leveraged positions to create fluctuations, sometimes distorting traditional chart readings. “Traders should be aware that market makers impact price action beyond just supply and demand,” he noted.

XRP has formed an ascending triangle pattern on the 1-hour chart, indicating potential bullish breakout. Source: EGRAG Crypto via X

Given their influence, XRP’s price movement might not always align with conventional technical predictions. While the asset has displayed bullish momentum, external factors such as institutional trading and liquidity providers can drive unexpected shifts.

As XRP pumped, it was also at the center of massive liquidations. Per data from CoinGlass, in one hour, $1.07 million worth of XRP positions were liquidated, of which $596,580 was from long traders and $476,140 was from short positions.

This liquidation amount was far bigger than that of Bitcoin over the same period, mirroring higher market action on XRP. According to analysts, this is a result of speculation on the possible approval of an XRP exchange-traded fund (ETF), which has been thrilling traders.

Investor appetite for a potential XRP ETF has grown following the filing by Grayscale to restructure its XRP Trust into a spot ETF. The fact that the proposal has been noticed by the U.S. Securities and Exchange Commission (SEC) has helped keep hopes in check. Ripple CEO Brad Garlinghouse stated, “The SEC’s notice of the XRP ETF proposal was inevitable despite initial resistance.”

The SEC has acknowledged Grayscale’s XRP and DOGE ETF filings, with a decision expected by mid-October. Source: Jesse Franklin via X

Following this report, the trading volume of XRP rose 47.39% to $8.05 billion, highlighting greater market demand. The majority of investors expect ETF approval to be an on-ramp to institutional adoption and drive XRP’s price upward.

Adding to the excitement, Ripple recently moved 390 million XRP, worth over $1 billion, in two transactions. The first sent 300 million XRP ($822 million) to an unknown wallet labeled “rP4X2,” and the second moved 90 million XRP ($246.6 million) to a different wallet, “rhWt2.”

Ripple transferred 300 million XRP ($778.7 million) to an unknown wallet. Source: Whale Alert via X

Although Ripple escrow releases are typical, the transactions were unrelated to the company’s monthly token releases, which raises the question of their purpose. Large crypto transfers would generally raise suspicion, but here, the price of XRP went up after the transactions.

With XRP’s price showing bullish momentum, all eyes are on its ability to surpass key resistance levels. Breaking through $3.40 could mark the beginning of a stronger uptrend, drawing more traders into the market.

Ripple’s XRP was trading at around $2.74, up 9.21% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

However, market volatility, institutional activity, and regulatory developments will play a significant role in determining XRP’s trajectory. Whether the digital asset can sustain its current pace remains to be seen, but investors are watching closely for the next big move.