3 factors that could cause a breakup

XRP is holding steady as the cryptocurrency market recovers, raising the question of whether its recent strength can turn into a lasting breakout.

XRP is consolidating near the $2.50 mark as bullish momentum returns to the broader crypto market. According to market data from crypto.news, the fifth-largest crypto is trading at $2.47 at the time of publication, up 5.3% in the last 24 hours.

The rally comes as overall market sentiment improves, with several major assets recovering after a volatile week. With momentum returning, the question now is whether XRP’s recent strength can turn into a sustained breakout, a move that may depend on a few key developments.

Ripple ETF Approval

An important factor that could trigger the next XRP (XRP) price increase is the approval of a Ripple ETF. The U.S. Securities and Exchange Commission (SEC) is expected to make decisions on several ETF proposals this month. Decisions on Grayscale and 21Shares filings due on October 18 and 19 are still pending, possibly delayed by the US government shutdown.

Still, new applications like the Volatility Shares 3x and 5x Leveraged XRP ETF filings suggest growing institutional interest. Bitwise’s ETF application is due on October 20, with others from Franklin Templeton, Canary Capital and WisdomTree later in the month. A positive verdict could improve sentiment, drive major inflows, and propel the price of XRP to new levels.

Treasury Offers Could Drive XRP Price Rising

Aside from ETFs, institutional interest in a Ripple-focused treasury is increasing. A recent report revealed that Ripple Labs is spearheading a $1 billion fundraising to build an XRP treasury through a special purpose acquisition company (SPAC).

This effort, backed in part by Ripple’s own XRP holdings, could lead to increased demand from institutional buyers. The news also follows Ripple’s recent acquisition of GTreasury, signaling deeper integration of XRP into corporate financial systems and growing confidence in the token’s long-term potential.

Technical indicators signal bullish activity

From a technical perspective, XRP is showing early signs of a trend reversal. The Relative Strength Index (RSI) has risen to 41.32, surpassing its moving average of 36.41. While still below the key 50 level, this suggests easing bearish pressure.

While the MACD remains negative, the bars on its histogram are shrinking. This indicates that the bearish momentum is weakening and a bullish crossover could form if the current price strength persists.

XRP price currently holds support at $2.30, and a decisive move above $2.50 will likely open the way to $2.70 and possibly $3.00. With institutional demand rising and key technicals aligning, the token could be primed for a breakout if momentum is maintained.