XRP (XRP-USD) has been stuck in a tight trading range, but a classic bull flag pattern and rising optimism around a spot ETF approval have traders pumped. Some believe that a breakout is coming soon, and it could carry the token as high as $5.
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Analyst Sees Bull Flag Pointing Toward $5
On the daily chart, XRP has been forming a bull flag. This pattern is known for showing a pause before another strong upward move. The upper edge of the flag is at $3, which has become the level that buyers must clear.
Crypto analyst Crypto Pulse said XRP is “gearing up for its next big breakout toward $5.” He added that the price needs to stay above the August 3 low of $2.75 for the bullish picture to hold. If that support breaks, the token could fall back into the $2.50 to $2.60 range before making another attempt higher.
If buyers push through the $3 resistance, the target sits much higher. A breakout from the bull flag could lift XRP by around 77% from where it is today, with $5 as the clear destination.
Traders Defend Key Support Zones
The price action shows that XRP has important defenses in place. Both the 100-day and 200-day moving averages are holding between $2.48 and $2.68. These levels are acting like safety nets and protecting the bullish setup from collapsing.
Crypto Pulse explained that if XRP loses the $2.75 mark, the next stop could be in the $2.50 to $2.60 zone. Traders know that defending this area is critical. Without strong buying here, the bull flag formation would break down and a deeper drop toward $2 could follow.
So far, buyers have managed to hold the line. This resilience is what keeps the bullish case alive and the hope for a breakout toward $5 intact.
SEC Moves ETF Decision Dates Closer
While charts are important, a bigger story is unfolding. The U.S. Securities and Exchange Commission is reviewing several XRP spot ETF applications, with deadlines coming between October 18 and November 14. Ripple’s legal victory also made it clear that XRP is not a security, and that ruling opened the door to this new round of filings.
Betting odds now suggest approval is very likely. The probability has climbed to 87%, up from 64% only a month ago. ETF expert Nate Geraci went even further, saying he believes the odds are “closer to 100 percent.” Bloomberg’s Eric Balchunas has also placed the chance at around 95%, pointing to the friendlier regulatory climate.
If the SEC does approve even one of these ETFs, it could trigger an influx of new money flowing into XRP.
Investors Imagine a Surge in XRP Demand
The ETF story matters because it could attract investors who have been waiting on the sidelines. Institutions would finally have a regulated way to own XRP, and that would bring in a huge amount of demand that smaller retail buyers cannot match.
Some analysts already see the $5 target as just the first step. If ETF approval arrives and large players like BlackRock (BLK) enter the market, forecasts range from $10 to $20 and even higher. The most bullish calls suggest XRP could eventually hit $50.
But, for now, the focus stays on the $3 resistance. If XRP clears that level and the SEC moves closer to approval, the ingredients in the broth will be brewing for a new rally.
At the time of writing, XRP is sitting at $2.8531.
