XRP Price Prediction: Back to #3 After 25.8% Weekly Surge—Can the Bullish Momentum Last?

Beginner7/21/2025, 4:34:08 AM
This article analyzes the background and technical factors behind XRP’s return to the third-largest market capitalization, referencing recent news that XRP’s price surged 25.8% over the past week. It also provides guidance for new investors.

1. XRP Price Prediction: What’s Behind the 25.8% Weekly Rally?


Chart: https://www.gate.com/trade/XRP_USDT

Last week, Ripple (XRP) surged 25.8%, with its price rising from around $2.75 to a high of $3.66. This move pushed XRP’s market capitalization to third among global cryptocurrencies, behind only Bitcoin and Ethereum. The rally not only set a new weekly record for XRP this year. It also reignited market confidence in the asset.

Three main factors drove this rally:

  • Macro tailwinds: Renewed interest in Bitcoin ETFs lifted the broader crypto market.
  • Technical breakout: XRP broke its long-term downtrend line, prompting substantial quantitative buying.
  • Improved sentiment: As the Ripple-SEC lawsuit developments slowed, sidelined funds began returning to XRP.

2. Technical Analysis: Support and Resistance Levels

After its sharp run-up, XRP is now consolidating around $3.45. On the technical side:

  • Key support: $3.35 is a strong level; a break below could test $3.20.
  • Short-term resistance: $3.66 marks the current top. A breakout above this level could challenge the psychological barrier at $4.00.
  • Volume: Volume was strong during the rally and lighter during the pullback. This pattern suggests healthy consolidation.

Traders should watch for breakouts on high volume or breakdowns on low volume, as these signals will help determine if the trend will continue.

3. Market Signals and Momentum Continuation Potential

Sustained momentum for XRP depends on two factors:

  • The appearance of new positive events (such as a resolution of the SEC case).
  • The broader crypto market maintaining its bullish trend.

The market is currently in wait-and-see mode. Major participants have not fully exited, so after consolidation, another upward move remains possible.

4. Key Risks for Investors

  • Sharp pullback risk: Rapid gains may trigger profit-taking and corrections.
  • Macro risks: External factors like Federal Reserve rate hikes or tighter regulation.
  • Volatility from emotional trading: Highly opinionated XRP communities can intensify panic buying or selling.

5. Tips for Beginners: How to Trade XRP at This Stage

If you are new to XRP, consider these strategies:

  • Avoid buying at highs. Wait for a pullback to around $3.35.
  • Set stop-loss orders, for example, at $3.20.
  • Build your position in batches to control risk.
  • Avoid excessive leverage and maintain disciplined, rational decision-making.
Author: Max
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
* This article may not be reproduced, transmitted or copied without referencing Gate. Contravention is an infringement of Copyright Act and may be subject to legal action.
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