XRP Drops 2.293% Amid Bullish Pennant Breakout, $11 Target Set

XRP's latest price was $3.02, down 2.293% in the last 24 hours. XRP has recently broken out of a long-standing bullish pennant pattern, which has sparked optimism among analysts about its potential for growth. This pattern, characterized by a sharp upward movement followed by a narrowing range, is typically seen as a continuation signal. The initial surge that formed the flagpole peaked at approximately $3.40 in January 2025, and XRP then fluctuated between $2 and $3 for several months, creating the pennant shape. Technical indicators now point to $11 as a near-term projection, based on the flagpole’s height and the subsequent breakout confirmation. However, analysts such as EGRAG caution that this target could once again underestimate the token’s upside, citing historical data that suggests a more substantial rally could unfold.

In his latest technical breakdown, EGRAG reviewed XRP’s market behavior in 2023, where a falling wedge pattern on the weekly chart led to a surprising rally. At the time, XRP dropped from around $1.96 in 2021 to a bottom of $0.35 in early 2023. Upon breaking out of the wedge, EGRAG initially projected a rise to $1.43. However, XRP far exceeded that estimate, reaching over $3.30 by January 2025, more than doubling the original forecast. This past instance serves as a basis for EGRAG’s current argument, price models based on traditional linear projections may not fully account for crypto assets’ capacity for exponential growth. According to his analysis, if XRP performs similarly to its previous breakout, the $11 forecast may be conservative, and the price could climb as high as $22.

EGRAG also pointed out a broader observation concerning market forecasting. He emphasized that relying solely on linear patterns may no longer be suitable for the crypto sector, where volatility and momentum often defy conventional expectations. Instead, he recommends using logarithmic measurements to capture the full scope of potential growth, especially in cases where historical breakouts have far surpassed predicted targets. While $11 remains the most immediate and technically supported target following XRP’s recent breakout, analysts like EGRAG continue to encourage a wider lens when evaluating potential outcomes. His latest projections suggest that under favorable conditions and continued momentum, a move to $22 is not unrealistic. Market participants are now closely watching price action for signs of further acceleration.

A fresh move by the SEC could clear the path for the first US spot ETFs tracking altcoins like XRP. Traders and investors are watching closely as new rules aim to speed up approvals by late 2025. This change comes just months after in-kind creation and redemption for crypto ETPs won the regulator’s blessing. According to the recent filing of the US Securities and Exchange Commission, any coin with at least six months of futures trading on a platform such as Coinbase’s derivatives exchange can qualify for an exchange-traded product. The six-month rule replaces a longer review process that could stretch into 240 days. Instead, exchanges can use a 75-day window once they file a rule change. This shift aims to simplify the path for an XRP ETF and similar products.

Developments around in-kind creation and redemption also matter. Based on reports from crypto lawyer Bill Morgan, this change lets authorized participants create or redeem ETF shares using actual cryptocurrency rather than cash. The revision slashes settlement costs and lines up crypto products with how gold and other commodity ETPs work. Market makers can now back ETFs with real tokens, cutting out extra steps. A key hurdle remains the legal fight between Ripple and the SEC. Based on reports, both sides may drop appeals ahead of an August 15 status report deadline. If that happens, it would remove a major overhang on XRP ETF applications. The SEC has already extended Franklin Templeton’s review through the end of 2025, but this new filing hints those long waits might wrap up sooner. Legal experts like former SEC lawyer Marc Fagel believe a dismissal of appeals would clear one of the last big obstacles. Then only final SEC sign-off would stand between issuers and live trading.

Ripple’s Chief Technology Officer, David Schwartz, has once again drawn attention to XRP’s critical role in Ripple’s payment ecosystem. In a recent post on X, Schwartz remarked, “I don’t have the numbers in front of me, but I’m pretty sure XRP’s use as a bridge in Ripple Payments dwarfs every other asset.” His comment highlights XRP’s central position in Ripple’s infrastructure and sets the stage for a broader discussion about how XRP and stablecoins are used in today’s digital financial systems. Schwartz’s statement reinforces what Ripple has long maintained: XRP is the core bridge asset for cross-border transfers within its payment network. This isn’t by chance. XRP is natively integrated into the XRP Ledger (XRPL), allowing for automatic pathfinding between currencies and seamless asset bridging, capabilities that few digital assets can match.

Ripple’s on-demand liquidity (ODL) product relies on XRP to settle transactions in seconds without the need for pre-funded accounts. With throughput of up to 1,500 transactions per second and near-instant settlement, XRP dramatically reduces friction and cost for global transfers. These advantages make it the preferred asset in Ripple’s liquidity corridors, giving it a dominant footprint in real-time value movement across currencies. While XRP leads in bridging value, Schwartz acknowledges that stablecoins hold the upper hand in other domains. Their price stability makes them ideal for use as collateral and for transactions at the on/off ramps of the financial system, where volatility is a disadvantage. Stablecoins such as USDC and USDT are widely used in lending, remittances, and institutional treasury operations. In 2024 alone, stablecoin payment volumes exceeded $1.3 trillion, according to industry reports. Their predictability is crucial in environments that demand minimal risk and regulatory clarity, making them the default for many financial players who require stability above all.

Schwartz also suggests that unless one is highly risk-averse, top-tier digital assets, including XRP, are more appealing to hold than fiat-backed stablecoins. This is especially true for users seeking long-term upside and utility beyond just preserving capital. The trade-off is clear: stablecoins offer short-term predictability, while assets like XRP offer broader functionality and speculative potential. Schwartz concludes by reaffirming that more real-world use of the XRP Ledger will naturally lead to greater utility, and thus value, for XRP. As the ledger’s native asset, XRP is essential to its operation. Unlike other networks where native tokens can be sidestepped, XRP remains embedded in every transaction path and exchange pair on XRPL. Although most institutional Ripple transactions are still off-chain due to compliance considerations, ongoing efforts to integrate permissioned liquidity and regulatory frameworks could unlock more on-chain activity in the future. David Schwartz’s latest insights reaffirm XRP’s foundational role in Ripple Payments. While stablecoins dominate specific functions due to their stability, XRP’s deep integration into Ripple’s infrastructure gives it a unique and irreplaceable position. As XRPL adoption grows, so too does the long-term utility and value proposition of XRP.

Market participants continue to analyze Ripple's established protocol involving the monthly release of 1 billion XRP from escrow wallets, a process acknowledged as a standard operational procedure by the company. This activity occurs against a backdrop of ongoing regulatory scrutiny impacting the broader digital asset landscape, contributing to discussions surrounding the operational environment for Ripple and XRP.

Within the XRP community, prominent figures have recently addressed recurring commentary regarding perceived stagnation in the asset's performance, expressing confusion over the persistence of such concerns given market dynamics and broader industry developments.

XRP has been highlighted in relation to several key technical milestones identified by market analysts. Observers note specific thresholds perceived as potential catalysts for directional movement, though these perspectives are inherently speculative within volatile markets.

Increased attention has focused on Ripple following its inclusion in a significant U.S. governmental analysis focused on digital assets. This development has fueled debate regarding the potential long-term implications for the ecosystem and its trajectory, influencing market narratives around XRP's prospects.

The broader cryptocurrency market, including XRP, experienced heightened volatility in response to macroeconomic data releases. Recent reports detailing unexpected inflationary pressures significantly influenced overall market sentiment. Concurrently, the Federal Reserve maintained its current interest rate policy, with central bank officials indicating that future monetary policy adjustments remain data-dependent. Market participants widely interpreted these combined developments as signaling sustained higher interest rates for the immediate future, impacting asset allocation decisions across various classes.