XRP Nears Breakout as Accumulation Phases Signal Building Momentum

XRP, the digital asset associated with Ripple, remains within what several analysts have described as an undervalued price range, according to recent market analysis. Current trading levels hover just below $4, well within a red zone of undervaluation on a long-term price channel identified by CryptoBull. This model categorizes the price range between $4 and $45 as a dark green zone and from $45 to $250 as a light green zone, suggesting potential for upward movement if bullish momentum continues. As of the latest data, XRP has shown a 2% gain over the past 24 hours and a 7% increase over the past week, with a 24-hour trading volume of $6.62 billion.

Analysts have identified three distinct accumulation phases in XRP’s price structure, with the most recent forming just below the 2017 all-time high near $3.80. These phases show a pattern of time compression—each accumulation period has lasted less time than the previous—raising the possibility of a larger price move. Jackis, a market observer, noted that XRP has yet to reach its full potential and may soon break out of its current consolidation phase. A potential target for the price was cited as $7.00 by the end of 2025, based on the structure of these phases.

XRP has also broken free of a 49-day downtrend, according to CryptoWZRD, after surpassing a key lower high trendline. This breakout is viewed as a sign of renewed buyer interest, with the next critical level at $3.65. Additionally, exchange reserves for XRP have reached a 12-month high, suggesting that more tokens are entering trading platforms and could be used to facilitate further price movement.

The potential for regulatory developments also remains a key factor. Over a dozen spot XRP ETF applications are currently under review by the U.S. Securities and Exchange Commission (SEC), with decisions expected in October. These filings are seen as a potential catalyst for increased market attention and liquidity, particularly if any applications are approved.

In the broader economic context, Federal Reserve futures indicate a 78% probability of a 25-basis point rate cut on September 17. A rate cut is expected to weaken the U.S. dollar, which historically supports the performance of digital assets such as XRP. However, it is important to note that these forecasts are speculative and tied to broader monetary policy expectations rather than direct market performance.

Overall, while XRP has shown signs of stabilizing and potential upside, its price remains within the lower end of long-term analyst models. The asset's performance will likely depend on a combination of technical support, regulatory developments, and macroeconomic factors such as interest rates.