XRP's $3.20 Hurdle: Gateway to Bullish Reversal or Bearish Slide?

XRP is at a pivotal juncture as market participants closely monitor its ability to break through a critical resistance level of $3.20, a threshold that could catalyze a significant upward move. Current price action shows XRP trading near $2.76, having slipped 3.19% in the past 24 hours, underperforming the broader crypto market’s 2% decline. Analyst Egrag has highlighted two key price zones: a support level near $2.20 and a breakout target at $3.20. The token’s prolonged consolidation suggests a potential reversal is imminent, with either a sustained rally or a decline toward the $1 range as possible outcomes XRP Price Eyes $3.20 as ETF Hopes and RLUSD …^[1].

Technical indicators and on-chain activity further underscore the significance of the $3.20 level. Egrag notes that XRP has been range-bound for months, with a decisive close above $3.20 signaling a bullish reversal. Conversely, a drop below $2.20 could reignite downward momentum. Retail investor participation and whale activity have added volatility to the market, with large sell orders occasionally clashing with retail buying pressure. This dynamic has created a mixed sentiment, though bulls remain optimistic about XRP’s long-term potential XRP Price Eyes $3.20 as ETF Hopes and RLUSD …^[1].

Fundamental developments also support a positive outlook. Ripple’s recent settlement with the SEC has bolstered institutional confidence, while the anticipated approval of spot XRP ETF applications by mid-October could unlock significant institutional inflows. Additionally, Ripple’s RLUSD stablecoin expansion into Japan is expected to enhance the XRP Ledger’s role in global payments. Prominent developer Harry Harald has reignited bullish speculation with a $4 price target, citing historical patterns and a TD Sequential buy signal on XRP’s 4-hour chart, which has shown 60–70% accuracy in past instances XRP Price Eyes $3.20 as ETF Hopes and RLUSD …^[1].

However, risks remain if XRP fails to breach $3.20. Analysts warn that a sustained decline below this level could test lower supports, including the $2.90 and $2.60 ranges. These levels align with previous consolidation points and technical indicators, making them critical for short-term stability. A breakdown could trigger a broader correction, particularly if whale-driven sell-offs outpace retail buying. The U.S. tax waiver for domestic crypto projects, which grants a zero capital gains tax advantage to U.S.-based assets like XRP, may mitigate some downward pressure by attracting tax-efficient investors .

Long-term projections remain cautiously optimistic. While immediate volatility is expected, the broader market dynamics—including ETF momentum and institutional adoption—suggest XRP could achieve multi-year highs. Phantom DeFi’s projection of $25 by year-end 2025, though speculative, reflects the token’s potential if macroeconomic conditions align with bullish technical setups. However, investors are urged to remain cautious, as regulatory shifts, market sentiment, and liquidity conditions could all influence outcomes XRP Price Eyes $3.20 as ETF Hopes and RLUSD …^[1].