Ripple (XRP) Price Prediction: Can XRP Hold Its Gains and Reach $3?

The rally follows a bounce from the $2.00 support zone, indicating a potential shift in market sentiment.

The crypto market has seen a shift in sentiment, with major tokens showing signs of recovery following a period of decline. Among the tokens that have shown promise is Ripple (XRP), which has bounced from the $2.10 support zone, indicating a potential change in trend.

According to technical indicators, Ripple XRP is still trading within a descending trend but has started to break out. The token is currently testing resistance levels at $2.29 and $2.40, which could lead to a rally toward $2.84 and $3 if breached. A successful breakout beyond these levels could open the door for further gains, potentially aiming for the $3.40 level or even higher.

On the other hand, if the price drops below the $2.10 support, it could trigger another sell-off, bringing XRP closer to its next major support at $1.85.

One of the factors that could contribute to XRP's rise is the recent shift in macroeconomic policy. Former President Donald Trump has dropped plans to impose new tariffs against metals from Canada, which could reduce fear around the trade war and spur a rally around risk assets and cryptocurrencies.

Furthermore, Sen. Cynthia Lummis has brought back the BITCOIN Act, which would propose buying the U.S. government 1 million BTC legally. While the legislation is focused on Bitcoin, it has fueled speculation that other digital assets, including Ripple cryptocurrency, could be considered for inclusion in a government-backed reserve.

This speculation has been a hot topic among crypto traders, especially with the increasing interest in Bitcoin and other major cryptocurrencies from U.S. institutions.

However, despite the speculation and rumors, it's important to note that the chances of such an occurrence are slim, considering the vast sums involved and the political will required to allocate such an amount of the national reserve to cryptocurrency.

Nevertheless, the rumors have sparked lively discussion and highlight the evolving role of digital assets in the global financial landscape. As the cryptocurrency industry continues to mature and innovate, it will be interesting to observe how these developments unfold and impact the broader market.

In other developments, institutional adoption of XRP is also driving its price performance. It has been noted that over 500 banks offer XRP custody today, further solidifying its role in cross-border payments. Meanwhile, the anticipated approval of a spot XRP ETF has become more robust, with asset management giants like Franklin Templeton entering the process of launching such a fund.

However, regulatory ambiguity is still present. Recently, the U.S. Securities and Exchange Commission (SEC) delayed its decision on a series of crypto-related ETF proposals, including XRP.

Market experts comment that the confirmation of Paul Atkins as the new SEC chairman in April could be a turning point for regulatory clarity.

Atkins's appointment is significant because he is known for his pro-crypto stance and has previously spoken out in favor of Bitcoin ETFs. His leadership at the SEC could pave the way for more favorable regulations for the crypto industry, which could attract more institutional investment and drive up prices.

In the short term, the ability of XRP to stay above $2.25 suggests the existence of the momentum. Whether this will translate into a longer-term rally or short-term bounce remains dependent upon overall market trends and investor mood within the next few weeks.

In the long term, if the bulls take over completely, the next resistance level is at $2.60, which could be a stepping stone for a potential rally toward $3. However, if the bears manage to break the $2.10 support, it could open the door for another sell-off, bringing Ripple closer to its next major support at $1.85.

From a technical perspective, Ripple's price in USD is maintaining support at $2.10, which has provided a bullish signal. The token is now testing resistance levels at $2.29 and $2.40, with a breakout potentially paving the way toward $2.84 and $3—the highest level XRP reached in early January.

A decline below $2.10, however, could trigger another sell-off, bringing Ripple closer to its next major support at $1.85.

Analysts caution that while the recent surge is encouraging, sustained momentum will depend on market liquidity, overall sentiment, and external economic conditions.

As the dust settles on the macroeconomic stage and the spotlight turns to the cryptocurrency domain, traders are closely following Ripple's price movements. Can XRP hold onto its gains and break through the $3 barrier? Only time will tell as this unfolding market drama continues to captivate the attention of financial enthusiasts worldwide.