XRP Targets $20 Amid ETF Speculation and Regulatory Hopes

Crypto trader Egrag Crypto has set a $20 target for XRP, predicting a significant rebound for the cryptocurrency following the White House Crypto Summit. This projection comes amidst a challenging period for altcoins, which have experienced substantial losses over the weekend, extending their long-term declines. Despite the bearish sentiment, bulls remain optimistic about a market reversal by April.

Egrag Crypto's analysis suggests that XRP could see a 10x increase in value, driven by heightened whale volumes and a broader market upswing. Currently, XRP is trading at $2.21, down 1% from the previous day. Achieving a 10x increase would propel XRP to over $20, marking an unprecedented high for the asset. This optimistic outlook contrasts with the asset's recent performance, which has yet to surpass $4 this cycle. Last year, XRP gained institutional favor, breaking the $3 mark for the first time in two years after a prolonged period below $1 following the SEC's lawsuit against Ripple and its executives.

The formation of a crypto task force in the United States has sparked renewed interest in XRP, with clear regulatory guidelines expected to attract more investment. Following Donald Trump’s inauguration, XRP bulls maintained a bullish stance before the market dip. Analysts, including Marzell, suggest that XRP could see gains before the next bull run, citing a descending channel pattern on the daily timeframe that indicates accumulation before the next leg up. Support at $2.12 could drive the price toward targets at $2.32, $2.61, $2.90, and $3.35.

Egrag Crypto also highlighted the potential for altcoin inflows as traders regain confidence. Recent whale holdings show large investors buying the dip, with Ethereum whales adding over 400,000 assets and transferring a larger number off exchanges. XRP and Solana have seen significant drops, with XRP falling 14% and Solana 17% in the past seven days. Despite these losses, traders are hopeful for a recovery ahead of the next bull run.

The price of XRP has experienced significant volatility this week, rising by 23% due to speculation surrounding an exchange-traded fund (ETF) and increased institutional demand. The approval of an XRP ETF by the U.S. Securities and Exchange Commission (SEC) could potentially drive over $5 billion in inflows, mirroring the success of Bitcoin ETFs and propelling XRP into a new rally. However, the MACD indicator remains bullish, but there is a risk of a downside to $1.00 if the price fails to hold the $2.00 support level before resuming an uptrend.

On Friday, March 15, the price of XRP declined to $2.3, marking a 30% drop from its recent peak of $3.1, which was reached when the SEC confirmed XRP ETF filings by Grayscale in February. Key technical indicators on the XRP/USD weekly charts highlight critical levels that XRP must surpass to reach $20 if the ETF filings are approved. The price of XRP surged by 5% to reclaim the $2.3 support level following reports that the SEC could classify XRP as a commodity in its ongoing legal battle with Ripple Labs. This development is part of a potential settlement framework that could remove regulatory barriers surrounding XRP ETF approval. If XRP secures commodity status, it could facilitate the approval of an XRP ETF, driving speculation among investors.

The timeline for an XRP ETF approval hinges on several key regulatory developments. The SEC is currently reviewing multiple crypto ETF applications, including those for Ethereum and XRP, amid increasing pressure from institutional investors seeking diversified exposure to digital assets. Industry experts predict that an XRP ETF could gain approval in late Q3 or early Q4 of 2025, depending on how Ripple’s legal battle unfolds. If Ripple successfully secures commodity status for XRP and resolves the SEC lawsuit through a settlement, the regulatory pathway for an XRP ETF could become significantly clearer. Historically, the approval of spot Bitcoin ETFs in January 2024 triggered a wave of institutional inflows that pushed BTC price to new all-time highs. A similar scenario could unfold for XRP if the SEC greenlights a dedicated ETF product. Analysts project that an XRP ETF could attract over $5 billion in inflows within the first few months, potentially pushing XRP price towards $10 in the short term and $20 in a prolonged bullish cycle.

XRP's price is currently consolidating around $2.38 after retracing from its recent high of $3.10, with technical indicators signaling a potential move toward the $20 target by 2025. The Bollinger Bands on the monthly chart show an expansion phase, suggesting increased volatility, while the price remains above the midline support, indicating sustained bullish momentum. The MACD histogram continues to trend positively, confirming strong upward momentum, though the signal line crossing above 0.23 warrants caution. A bullish scenario unfolds if XRP reclaims the $2.57 resistance and maintains a monthly close above this level. This would confirm support at the upper Bollinger Band, allowing for a continuation toward the next psychological resistance at $5, where historical sell pressure previously emerged. If buying pressure sustains through 2024, a breakout above $5 could pave the way for a parabolic rise, with Fibonacci extensions pointing to $10 and beyond, fueled by ETF speculation and increased institutional adoption. Conversely, a bearish divergence in MACD or a failure to hold $2.00 as support could signal a deeper correction. A breakdown below $1.90 would expose XRP to downside risks, potentially testing the $1.00 psychological floor before a renewed uptrend. However, given the current technical setup, the path of least resistance remains upward.