XRP has recently captured headlines with a sharp price rebound, sparking optimism across the crypto market. After hitting $3.66 on July 18, the token has entered a phase of sideways consolidation, currently trading near $3.45. So why hasn’t XRP broken through the psychological $4 level yet?
Momentum Drivers: Regulation, ETF Hype, and Technical Strength
XRP’s rise in 2025 hasn’t come out of nowhere. Its recent momentum is fueled by a wave of positive catalysts, including regulatory clarity and growing institutional interest.
Three major crypto-related laws—CLARITY, GENIUS, and FAIR Disclosure Acts—have paved the way for clearer rules governing digital assets. These bills are widely seen as reducing legal uncertainty around XRP’s status, which has weighed heavily on the token in past years.
In parallel, ProShares filed the first XRP futures ETF, while 11 other asset managers submitted proposals tied to spot price movement. According to market data, there’s now an 88% probability of a spot XRP ETF being approved by December 2025—a milestone that could significantly boost demand.
Healthy Consolidation Before the Next Move?
Despite the bullish backdrop, XRP hasn’t surged past $4. But this delay may be more technical than fundamental.
On the daily chart, XRP appears to be forming a “bull flag” pattern—a short-term consolidation phase within a broader uptrend. Price action between $3.35 and $3.48 reflects market indecision, not weakness.
Such patterns often precede breakout rallies, giving the market time to digest gains and attract new buying interest. The key level to hold is $3.34, while a clean break above $3.66 could open the door to a run toward $4 and beyond.
Altcoin Season on the Horizon?
A broader shift in market sentiment may also support XRP’s next leg up. According to the Altcoin Season Index, which tracks performance among top 100 assets, a rotation away from Bitcoin dominance could be imminent. A value of 47 suggests altcoin season may be near, potentially accelerating capital flows into high-conviction tokens like XRP.
XRP Is Coiling for a Move
The delay in hitting $4 may not be a sign of weakness but of strength building beneath the surface. With institutional adoption rising, regulatory clarity improving, and technical setups favoring a breakout, XRP could soon resume its upward march—provided bulls defend critical support and reclaim $3.66 in the coming days.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.