XRP Eyes Potential Breakout as Institutional Demand Grows

XRP is showing renewed strength after a modest 3% daily gain. Market analyst Ali Martinez suggested that a sustained close above $1.38 could confirm a bullish breakout. If the price maintains this momentum, he believes the asset could climb back toward $1.60. Other observers are even more optimistic, with some pointing to a cup and handle pattern on the charts that might eventually push the price toward $2.50.

Despite this potential, there are hurdles to watch. Recent data shows a sharp drop in network activity, with daily active addresses falling significantly. Some large holders, or whales, have also been moving coins, which likely contributed to the recent pullback from the $1.70 highs seen last month. Traders should keep an eye on these volume trends to see if buying pressure can outweigh the recent profit taking.

Institutional interest remains a major tailwind for the project. Spot XRP ETFs have hit new records, with total net inflows reaching $1.7 billion. With major firms like Bitwise and Grayscale continuing to see consistent weekly inflows, the long term outlook from institutional players remains steady. Furthermore, new filings for hybrid ETFs that combine XRP with stock market assets suggest that institutional interest is far from cooling down.