- XRP’s breakout pattern signals a potential rally to $38, supported by historical price trends and technical analysis.
- Leverage-driven trading fuels XRP’s surge, but sustained institutional buying is needed for long-term growth.
XRP has surged following the SEC’s decision to drop its case against Ripple, marking the end of a legal dispute that had lasted over four years. Analysts believe this regulatory clarity could set the stage for a sustained rally.
Technical patterns indicate a historical breakout formation, with some experts suggesting XRP could reach $38. However, market data shows the current rally is largely fueled by leveraged trading rather than organic demand.
XRP’s Price Action Signals a Potential Breakout
XRP has bounced off the neckline of a long-term ascending triangle pattern, a setup that historically leads to sharp price increases. Technical analyst Gert van Lagen pointed out that a similar pattern occurred between 2014 and 2017, resulting in a parabolic rise.
His analysis, shared in a March 19 post on X, estimates that if history repeats, XRP could rally to at least $38.
$XRP [2W] is set to continue its bull market parabolically after bouncing off the neckline of this 7-year-old Double Bottom / Ascending Triangle, targeting at least $38.
Last break out of lesser caliber brought price twice its parabolic target, so this is very conservative. pic.twitter.com/acgv0ow7dl
— Gert van Lagen (@GertvanLagen) March 19, 2025
Price action confirms strong support levels, with XRP retesting its key breakout zone before resuming an upward trend. The 50-day simple moving average (SMA) at $2.45 now serves as short-term support, while the 200-day SMA at $1.66 highlights the long-term uptrend. Analysts say a sustained move above the $3 resistance level is crucial for further gains.
Social Sentiment and Leverage Drive XRP’s Momentum
XRP’s latest price surge has sparked increased interest on social media. Data shared by analyst Ali Martinez on March 19 shows a spike in social volume, a potential sign of growing retail investor interest.
However, on-chain data from Santiment suggests that no significant whale activity is driving the rally. Instead, open interest has risen by $200 million, indicating leveraged trading is behind the price movement.
$XRP is buzzing loud! Social volume explodes after the recent pump. The market is hyped! Is it a great time to be a contrarian? pic.twitter.com/i7i3iheo0w
— Ali (@ali_charts) March 19, 2025
While leverage can push prices higher in the short term, it also increases the risk of sharp corrections if traders face liquidations. For XRP to maintain its momentum, analysts say there must be sustained buying pressure from institutional and retail investors.
Will XRP Reach $38? Key Levels to Watch
Currently, XRP is trading at $2.52, up 12% in 24 hours and 14% over the past week. The Fear & Greed Index sits at 32, signaling cautious sentiment among investors. If XRP can reclaim the $3 level and hold above it, analysts believe the next target is $5. From there, if historical patterns hold, the asset could begin its move toward $38.
However, if leverage-driven trading continues without significant spot buying, a correction could occur before any further gains. Meanwhile, Ripple CEO Brad Garlinghouse expects an XRP exchange-traded fund (ETF) to launch by the end of 2025 following Ripple’s legal victory over the SEC. He believes increasing market interest and regulatory clarity could drive institutional adoption.
According to ETHNews, analysts predict XRP could reach $70, supported by historical price cycles and technical indicators. Market expert EGRAG CRYPTO emphasized that this forecast is based on mathematical models rather than speculation.
Additionally, Garlinghouse discussed the potential for a Ripple Labs initial public offering (IPO), which could further boost XRP’s market position. As XRP’s price gears for a surge, recent net inflows suggest growing investor confidence, with a significant price peak observed in early 2025.
