XRP Faces New Growth Drivers After Market Correction
XRP, the digital asset issued by Ripple Labs, recently experienced a correction after reaching its all-time high of $3.65 on July 18. The cryptocurrency entered a consolidation phase, slipping below the $3 support level. Analysts are now watching key price zones and potential catalysts that could influence its trajectory in the short and long term.
Analysts View Recent Correction as Potentially Healthy
Yoandris Rodriguez, regional manager for Latin America at B2BINPAY, described the decline as a normal correction rather than a breakdown. He noted falling trading volumes and signs of buyer interest at lower price levels, suggesting that investors are waiting for clearer signals before reentering the market. Rodriguez emphasized the $2.55 to $2.70 range as a key resistance area. A daily close above this range could open the path to $3.40, and projections foresee a possible move to $56 by 2026. However, Rodriguez warned that if XRP were to lose the $2.20 support, it could drop to around $1.75. Overall, he described current conditions as a mid-cycle consolidation before another potential rally.
Institutional Developments Bolster Ripple's Fundamentals
Rodriguez highlighted Ripple's continued institutional expansion as a core strength, mentioning the recent acquisition of Palisade, a digital asset custody and wallet technology provider. Ripple's president Monica Long stated that Palisade's integration would enhance Ripple's infrastructure, further supporting institutional use cases for XRP and Ripple's services.
Potential Catalysts: XRP Spot ETF and Banking Approvals
Eleazar Colmenares, CEO of Cryptobuyer Venezuela, pointed to macroeconomic uncertainties and political factors such as US government shutdowns as weighing on overall crypto markets. Despite this, he cited two key potential drivers for renewed XRP momentum: the approval of a spot ETF for XRP and Ripple's efforts to gain access to the US banking system. Colmenares referenced estimates from Canary Capital that a spot ETF could attract up to $10 billion in net inflows in its first month, making it easier for institutional investors to gain exposure to the asset. Nate Geraci, president of NovaDius Wealth Management, suggested that an ETF from Canary Capital could come to market within weeks.
Colmenares also underscored Ripple's application for a US banking charter, which would enable Ripple to issue and manage a US dollar stablecoin (RLUSD) under federal regulations. The move could further Ripples regulatory standing and ease stablecoin transactions on both the XRP Ledger and Ethereum. According to John Murillo of B2BROKER, such a charter would reduce regulatory risk and increase Ripples appeal as a banking partner.
Market Projections and Long-Term Value
Market analyst Alexander Velsquez projected that XRP could eventually trade between $10.97 and $66.67, citing the possibility of capturing a portion of the global payments market currently dominated by SWIFT. This forecast represents significant upside from current levels, but Velsquez notes that such gains rely on large-scale adoption and possible future partnerships, for which there are currently no definitive confirmations.
Context and Outlook
While Ripple continues to pursue strategic partnerships and regulatory milestones, analysts see both technical indicators and fundamental developments as supportive of XRP's long-term potential. However, they emphasize the importance of key support levels and regulatory milestones to the asset's near-term price outlook.
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