XRP Price May Rally to $3.90 as These Bullish Signals Emerge

Analysts Point to Breakout as XRP Price Forms Bullish Patterns

XRP price continues to consolidate around $3.11 while whale wallets accumulated 120 million tokens between August 10 and 15. 

According to Santiment, the number of wallets storing between 1 and 10 million tokens has grown their balances by 140 million XRP, to $6.72 billion, a sign of confidence once again among mid-tier investors.

Source : X

This build-up propelled Ripple price to $3.23 and then retraced, indicating a high level of market sensitivity to whale activity.

Additionally, the altcoin has risen by more than 430% since September 2024, as the price surged to over $3.00, with the stability around $2.85-$3.00.

This week, the altcoin netted outflows of over $90 million on two days, which is an indication of a lesser exchange supply. By August 15, flows had settled at near-zero, indicative of market indecision as price held above previous all-time highs.

Spot Inflow/Outflow : Source : Coinglass

Analyst Chad Steingraber attributed this horizontal action to continued consolidation prior to a possible breakout..

Analysts Highlight Ripple Breakout and Support Levels

Analyst Ali pointed out a symmetrical triangle developing on the 4-hour time frame, with Ripple climbing inside the range between $3.00 and $3.26.

This type of chart formation signifies a compression, and it usually comes before a breakout when the price reaches the apex of the triangle.

Source : X

A break above 3.26 may trigger the rally to 3.90, as per Fibonacci resistances.

The 0.382 Fib is at $3.07, whereas the 0.618 Fib at $3.26 has been serving as a ceiling that the crypto has to breach.

Separately, Dark Defender provided a bullish wave-based road map with Elliott Wave Theory and Ichimoku signals on the daily chart. Ripple is completing an ABC correction and getting ready to start wave (III), and the important support levels are at 3.00, 2.85, and 2.64.

Source : X

Upside targets from this structure are set at $3.33, $4.36, $5.85, and eventually $10.47. The Ichimoku cloud continues to offer support, reinforcing bullish momentum as the altcoin trades above it consistently.

Institutional Adoption and ETF Outlook

In a recent tweet, Ripple CTO David Schwartz described how XRP Ledger trust lines enable institutions to access the network without having to own XRP.

These trust lines are only 0.2 XRP each and can provide compliance controls, which are appealing to regulated parties.

The Interledger Protocol and XRPL also permit cross-asset transactions without altering the current processes, and participants can convert currencies without any difficulties.

This will enhance the application of Ripple token as a background infrastructure in complex payment systems in the fiat and cryptocurrency systems.

Meanwhile, Ripple CEO Brad Garlinghouse believes that XRP Spot ETF will receive SEC approval in October 2025.

He thinks it would signal a transition in retail speculation to institutional investment, as was the case in Bitcoin ETFs.

Steven McClurg of Canary Capital estimated that a Ripple ETF would be able to raise $5 billion in its initial month because of the clarity, utility, and absence of staking risks of XRP.

This would put it in fierce competition with Ethereum-based ETFs in terms of institutional capital.

Additionally, XRPL Ledger exceeded $1 billion in tokenised real-world assets (RWAs), which makes it hold 7.6% of this new market.

Brazilian company VERT Capital donated more than $900 million via its tokenised private credit platform that was introduced on XRPL in July.

As institutional adoption is increasing, favorable technical configurations, neutral exchange netflows, and ETF momentum, XRP price remains at a vital support level, in anticipation of its next step.