XRP already has the spark that was missing to explode up

A spectacular outbreak is not always necessary to unleash a great movement. Sometimes, a simple spark is enough.

And if not, it is enough to see XRP, who needed just a signal to turn on and shoot up.

Although the technical analysis had been throwing powerful signals, Ripple Labs cryptocurrency needed an extra impulse and appeared: the macroeconomic situation.

As cryptootics reported, the United States and China reached an agreement to reduce tariffs (or, at least, establish a 90 -day temporary truce).

The fact that the negotiations have come to fruition was interpreted by the financial markets, including Bitcoin (BTC) and cryptocurrencies, such as relief in the midst of tensions that the “commercial war” had unleashed.

Therefore, the impact of the news was immediate: The appetite woke up for risk. This is because financial speculators prefer a stable macroeconomic environment to make their movements.

There are fewer risks and greater possibilities of gain. When this happens, investors choose to place their holdings in assets considered risk such as actions, BTC and cryptocurrencies.

To the recent commercial agreement between the two main financial powers of the world, other key factors are added. One of them is the speech of the president of the Federal Reserve (Fed), Jerome Powell, who avoided giving concrete definitions about interest rates, although he left the door open to possible cuts this year. We must also mention the “historical commercial agreement” between the United States and the United Kingdom.

The accumulation of news was the spark suspended in the air that, when he fell, lit to XRP. Rather, that spark caused the break in the bullish flag that was consolidating the Ripple cryptocurrency.

The formation of this technical analysis pattern is characterized by a strong initial movement, followed by a consolidation phase, where the maximum and minimum prices are narrowed to converge in a point. When this pattern is resolved, there is usually a significant upward movement, as seen in the following image.

At the time of publication of this note, the price of XRP is $ 2.56, 24% below its historical maximum of $ 3.39, reached in January 2025.

How far can XRP go?

In social networks, several Influencers They repeat with insistence that XRP will reach 500 dollars, as if it were a mantra to resist market volatility. However, beyond optimism, the price depends on concrete factors.

If the macroeconomic context accompanies, that is, peace continues in the “tariff war”, XRP will have sufficient impulse to quote over 3 dollars.

For Jacobo Maximiliano, Exchange Bitget analyst, the Ripple Labs currency could reach a maximum of $ 725.

Crypto Michael, market analyst, predicts that XRP will reach a price of $ 5.80. More realistic projections than the exaggerated figures that circulate in the networks.

Within 37 days it will be the next meeting of the Open Market Operations Committee (FOMC) of the Fed to define the future of the monetary policy of the United States. If Powell announces a cut in interest rates, That will be extremely bullish for XRP.

This is because when the interest rate decreases, the cost of indebtedness is lower and there is more liquidity in the system. It is then that investors seek to obtain greater returns in the assets considered risk. It could also happen that Powell maintains or uploads more interest rates, something that will be extremely bassist for the market. But, if the story continues in this way, XRP could climb at levels not seen in its history.

Macroeconomy is not everything

While macroeconomics continues to be the main engine of markets, it is not the only factor in play. In the case of XRP, there are other elements that They could act as additional catalysts for their price.

One of the factors that could boost the price of XRP is the possible approval of funds quoted in the stock market (ETF) in the cash of XRP in the United States. Currently, companies such as Grayscale, Bitwise and 21Shares have submitted their respective applications to the Bag and Securities Commission (SEC) to launch these financial products to the market. This could increase XRP exposure among institutional investors and attract more liquidity to Ripple ecosystem.

However, you have to make a clarification: ETFs are not a guarantee of success for the price of an asset. An example to illustrate this statement is the ETF of Ether (ETH), the native currency of Ethereum, which so far have not replicated the good performance than those of BTC.

In addition, we must not rule out an increase in the adoption of Ripple USD (RLUSD), the Ripple Labs stablecoin that maintains parity with the US dollar. The financial product operates in the Ethereum and XRP Ledger networks, whose native currency is XRP. If Rlusd gains adoption, the activity will be increased in XRP Ledger, which will generate more XRP demand for the payment of commissions, promoting its price.

However, Rlusd is still far from competing with the dominant stablcoins such as USDT of Tether and USDC of Circle, which have a market capitalization of 150,000 million dollars and 60,000 million dollars, respectively.

The truth is that XRP’s fire is already on. The spark appeared and the wind already blows in its favor: now it only remains to see how far the flame can grow.

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