XRP (XRP) Price: Can Ripple’s Hidden Road Deal Push XRP to Break the $3 Barrier?

TLDR

XRP price currently holding around $2.13 within a falling wedge pattern Ripple’s Q1 2025 report shows institutional interest with XRP ETF filings Network activity has declined 30-40% with daily active addresses at lowest since November 2024 Ripple’s $1.25 billion acquisition of Hidden Road positions XRP in both digital and traditional markets Price target of $3 possible if bullish momentum resumes and market stabilizes

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XRP price is currently trading around $2.13, maintaining its position above the $2 mark despite recent market volatility. The crypto has been locked in a range between $2.03 and $2.30 for the past month, showing little decisive movement in either direction.

Technical analysis reveals that XRP is forming a falling wedge pattern on the four-hour chart. This pattern typically signals an upside breakout as selling pressure decreases.

Between April 28 and May 6, XRP formed lower highs and lower lows. When connected by trend lines, these swing points create the falling wedge setup that forecasts a potential 10% rally to $2.36 if the price breaks above the wedge’s upper trend line at around $2.14.

The price is currently fluctuating near the 61.80% Fibonacci level at $2.13. This area coincides with a key demand zone extending between $2.13 and $2.14.

Short-term indicators show mixed signals. The 4-hour chart shows the 50 and 200 EMA lines warning of a death cross event. The RSI is approaching oversold territory, reflecting a decline in bullish momentum.

XRP Price

Network Activity Cools Down

On-chain data tells a story of declining network engagement. According to Ripple’s Q1 report, there has been a 30-40% reduction in both new wallet creation and overall transaction volume on the XRP Ledger compared to the previous quarter.

Santiment data shows daily active addresses have dropped to around 40,000, the lowest since November 2024. This represents a substantial decline from March when daily activity regularly reached 300,000 and peaked at over 612,000 on March 19.

Large transactions exceeding $100,000 have also decreased from over 1,500 at the March peak to approximately 1,000 per day now. DEX volume has decreased by 16% quarter-to-quarter.

Despite these declines in user activity, development work continues to progress. The last 30 days saw a 196% increase in developer contributions to XRPL, suggesting new protocols and updates are in the pipeline.

On May 5, two new protocols announced their launch on XRPL: Vaultro Finance, a tokenized index fund, and XpFinance, a decentralized lending protocol.

Interestingly, Ripple’s stablecoin RLUSD has emerged as a key driver of on-chain activity. Its market cap has surpassed $90 million, with a cumulative DEX volume exceeding $300 million.

Institutional Developments Bring Hope

Ripple’s Q1 2025 market report highlights several positive developments that could impact XRP’s future price performance.

The report points to optimism fueled by recent U.S. administrative changes, including Trump’s executive order supporting cryptocurrency, Paul Atkins becoming the SEC chairman, and bipartisan support for stablecoins.

Institutional interest in XRP has grown with Franklin Templeton filing an S-1 form for an XRP-based ETF and Volatility Shares filing for three XRP ETFs. Brazil’s CVM has approved a dedicated XRP ETF, while CME Group has launched XRP Futures.

Overall, XRP investment products have seen $37.7 million in weekly outflows, but the year-to-date inflow stands at an impressive $214 million. The XRP investment product is just $1 million away from overtaking global Ethereum funds.

Perhaps the most significant development is Ripple’s $1.25 billion acquisition of Hidden Road, one of the fastest-growing prime brokers globally. This represents one of the largest acquisition deals in the digital assets space.

Through this acquisition, Ripple aims to position its RLUSD stablecoin as an enterprise-grade USD-backed stablecoin with real-world utility. The company plans to leverage its collateral across prime brokerage products, potentially making RLUSD the first stablecoin to enable cross-margining between digital assets and traditional markets.

If market conditions stabilize and XRP breaks out of its current pattern, price targets range from $2.50 in the short term to between $2.75 and $3.15 in more optimistic scenarios. However, crucial support remains at the 50% Fibonacci level, coinciding with the $2 psychological mark.

On the technical side, most short-to-mid-term moving averages are trending lower and giving “sell” signals. Only the 200-day estimated moving average at $1.99 is providing support.

The next few weeks will be crucial for XRP as the market watches to see if the network gains momentum from upcoming launches and if price action can break above the $2.30 resistance level.

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