XRP has been on a roller-coaster ride this year, starting with a peak of $3.39 in January before experiencing a nearly 30% drop. However, the digital asset is making a strong recovery, with its price currently at $2.47—a 38% increase from its low of $1.79. Analysts are predicting that XRP could continue to rise, with some forecasting a breakout to $4.20.
Catalyst for the Surge: Ripple’s Legal Victory and Dubai License
The recent surge in XRP’s price can be attributed to two significant developments. First, Ripple resolved its legal battle with the U.S. Securities and Exchange Commission (SEC), clearing a major obstacle for the cryptocurrency. Additionally, Ripple has secured a new license in Dubai, which has sparked investor optimism and further bolstered the token’s upward momentum.
Key Technical Levels and Trends
On the 4-hour chart, XRP recently bounced off a support level at $2.37, which aligns with the 50-4H exponential moving average (EMA). According to crypto analyst Dom, XRP needs to stay above $2.50 to maintain its upward momentum. In a recent tweet, he emphasized that the chart is looking “constructive,” and a sustained price above $2.50 would be a strong signal for buyers.
Breakout Potential: Aiming for $4.20
XRP faces key resistance levels at $2.46 and $2.66. If the token can push past $2.46, it may reach the next major target at $2.77, which is a key Fibonacci retracement point. If XRP continues to consolidate and then breaks above the upper trendline of a forming symmetrical triangle pattern, it could surge to $4.20 by May, according to analysts.
The symmetrical triangle pattern suggests that after a rally, XRP is now experiencing consolidation before potentially breaking out higher. Historically, this pattern has been bullish, signaling further price increases after significant rallies—such as the 575% price movement observed from late 2024 to early 2025.
Indicators Supporting the Rally
The Relative Strength Index (RSI), a key indicator of buying pressure, is currently above 60, suggesting strong demand for XRP but not yet in the overbought territory. Furthermore, the Binance liquidation heatmap shows that key resistance levels lie around $2.66 and $2.98. If XRP breaks through $2.66, it could trigger a wave of liquidations, pushing the price even higher.
Conclusion: Is $4.20 Within Reach?
With strong technical signals, a clear breakout pattern forming, and a solid catalyst in the form of Ripple’s legal victory and new license, XRP could continue its upward trajectory in the coming months. While $4.20 is not guaranteed, analysts predict that if the upward trend holds and XRP continues to push past key resistance levels, this target is achievable by May.
Investors are watching closely, as XRP’s future price movement could signal a major milestone for the digital asset in 2025.
Related topics:
Uniswap’s Fee Switch Plan Moves Forward with $165.5M Funding, UNI Price Jumps 10%
Dogecoin Eyes Breakout to $0.29 in the Short Term
CrossFi Releases 2025 Crypto Market Research Survey Report: Insights on Crypto Adoption and Use
