- XRP shows breakout potential with strong Q1 fundamentals: market cap up 2%, users +142%
- Ripple advances XRPL utility: EVM sidechain on testnet, new RLUSD stablecoin grows fast
- XRP Technicals: Price near $2.36, break above $2.54 could target $3.29 and higher
After a lengthy downtrend, XRP now shows multiple bullish signals. Its on-chain fundamentals turned sharply positive, and the cryptocurrency is currently consolidating just below key Fibonacci resistance, fueling talk of a significant price breakout.
Some market analysis, including points from a Messari report highlighted on their X account (@MessariCrypto), suggests the digital asset could be setting up for a move above $3, and possibly even toward the $5 mark.
XRP Fundamentals Shine: Q1 Market Cap Gains, Active Addresses Soar 142%
According to Messari’s report, XRP was one of the few major cryptocurrencies to post market cap gains in Q1 2025, rising 2% quarter-over-quarter. This stands in stark contrast to the broader crypto market, which saw Bitcoin, Ethereum, and Solana shed over 20% each during the same period.
Beyond market cap, XRP’s daily active addresses jumped an impressive 142% from the previous quarter, reaching 134,600. That figure marks its highest growth since Messari began its coverage. Average daily transactions for XRP also climbed to 2.04 million. These were mostly driven by payment volumes, underscoring XRP’s established role as a payment-focused digital asset.
Related: XRP Holds $2.35 as Chart Signals Hint at Breakout, EGRAG Sets $2.65 Target
XRP Ledger Evolves: EVM Sidechain, Native Smart Contracts Expand Utility
The XRP Ledger (XRPL) itself is also making moves to expand beyond just payments. Ripple’s EVM-compatible sidechain went live on testnet, enabling Ethereum-style smart contracts to run parallel to XRP’s lean native chain.
Interestingly, XRPL is also preparing to integrate native smart contract support via “Extensions,” without compromising its core architecture. This could open the door to a new wave of decentralized applications and DeFi use cases.
Ripple’s RLUSD Stablecoin, Hidden Road Deal Boost XRP Institutional Appeal
Adding to this momentum, Ripple’s own stablecoin, RLUSD, reached $44.2 million market cap, just weeks after its launch. Backed by US dollar deposits and short-term Treasuries, RLUSD is set to play a key role in XRP’s growing ecosystem, particularly as it becomes usable across Ethereum and XRPL alike.
Additionally, Ripple’s acquisition of prime brokerage firm Hidden Road has positioned XRPL to serve as a foundational layer for institutional crypto finance. RLUSD is expected to be used as collateral across these platforms, giving XRP broader utility in high-volume trading environments.
XRP Technical Analysis: Consolidating for Breakout? Key Levels to Watch
XRP is currently trading at $2.36, hovering just above the 0.236 Fibonacci retracement level ($2.2546) from the recent swing low of $2.07 to the high of $2.8273.
A decisive move above the next resistance zone at the 0.382 Fib ($2.5430) could trigger a momentum-driven push toward the previous high at $2.82, followed by the Fib 1.618 extension target at $3.29. On a full breakout, long-term targets stretch toward $4.04, $4.78, and even $5.25, which align with the 2.618, 3.618, and 4.236 Fibonacci extensions, respectively.
Related: XRP (XRP) Price Prediction for May 21: Is Consolidation Hinting at a Breakout or Breakdown?
Moreover, the Relative Strength Index (RSI) currently sits at 52.76, indicating that XRP is neither overbought nor oversold — a perfect setup for a sustained rally if bullish catalysts materialize.
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