XRP Pennant Breakout: Traders Eye Massive Upside Surge Ahead

XRP just shattered its consolidation pattern—and the charts scream bullish momentum.

Technical Breakout Confirmed

The pennant formation finally gave way, signaling potential double-digit gains. Trading volumes spiked as bulls piled in, pushing past key resistance levels that had capped prices for weeks.

Market Sentiment Shifts

Traders who missed Bitcoin's run are now flocking to XRP, hoping to catch the next big wave. The pattern suggests a classic momentum play—because nothing gets crypto investors excited like chasing green candles.

Targets in Sight

Historical data points to strong upside targets, though seasoned traders know these patterns sometimes promise more than they deliver. Still, the technicals look solid—for now.

Just remember: in crypto, today's breakout can become tomorrow's 'buy the rumor, sell the news' classic. But hey—at least the charts look pretty.

Technical Picture: XRP Forms Pennant Pattern

XRP’s price action over the past several weeks has formed a pennant structure, a chart pattern that often signals the continuation of a trend once the range breaks. The token currently trades NEAR $3.00, holding support around $2.87 while testing resistance near $3.10.

If bulls manage to push past $3.10 with solid volume, XRP could quickly advance toward $3.37 and potentially $3.60. A further surge might even open the path toward the $4 mark, a level that could energize long-term holders and attract fresh capital into the market.

On the downside, failure to defend $2.87 support might send the token toward $2.70, creating a retest zone before any recovery. For now, however, traders appear focused on the potential for an upside breakout.

Supporting this bullish outlook, the Directional Movement Index (DMI) shows positive strength building as the +DI remains above the –DI. Meanwhile, the parabolic SAR, a trend-following indicator, has flipped beneath the price, signaling growing bullish momentum.

Market Sentiment: Compression Fuels Anticipation

Since July, XRP has been trading in tighter ranges, steadily compressing toward a breakout point. This type of consolidation often leads to sharp moves once buyers or sellers gain control. Analysts believe that if volume joins an upside push, XRP could slice through resistance levels more decisively than before.

This compression, combined with ETF speculation, makes the current market setup particularly compelling. Traders are already positioning themselves for what could be one of the most important moves of the year for XRP.

ETF Speculation: Dom Kwok Sees Billions Ready

Adding fuel to the bullish case is commentary from Dom Kwok, who believes an XRP ETF would attract billions of dollars in inflows. According to him, XRP stands out because of its liquidity, wide holder base, and affordability compared to giants like Bitcoin and Ethereum.

“XRP has a market size second only to Bitcoin and ethereum but is significantly cheaper, which makes it more appealing to retail investors,” Kwok said. He stressed that an ETF would not just boost short-term price action but also introduce consistent long-term inflows, strengthening XRP’s overall market position.

His remarks come at a time when the SEC is reviewing several applications for crypto-based ETFs. Filings from companies such as 21Shares, Grayscale, Bitwise, CoinShares, and Canary Capital have had their deadlines extended to October. Additionally, the SEC announced that a proposal by Cboe BZX to list the WisdomTree XRP ETF will undergo a longer review, with a decision expected by October 24.

These developments provide the market with more time to digest the potential impact of an ETF and leave investors anticipating a critical fourth quarter for XRP.

What’s Next for XRP?

XRP finds itself at a crossroads where both technical and external forces are converging. The pennant formation has compressed to a point where a sharp breakout feels imminent. If bullish momentum carries through, the next few weeks could define the trajectory of XRP for the rest of 2025.

ETF-related optimism only adds to the bullish narrative. Should the SEC provide clarity or move closer to approval, capital inflows could boost XRP’s position in the broader crypto market. At the same time, failure to deliver could weigh on investor sentiment, potentially dragging the price back into consolidation.

For now, traders and long-term investors alike are watching the $3.10 resistance zone. A clean break above this level, coupled with ETF momentum, might be the catalyst that propels XRP toward $4 and beyond.

Conclusion

The XRP market is entering a critical phase as a bullish pennant pattern tightens and anticipation for an ETF builds. With SEC decisions scheduled for October and influential voices like Dom Kwok highlighting the potential for record inflows, conditions appear ripe for a breakout.

Whether XRP pushes beyond $4 or faces another round of consolidation, the coming weeks will likely shape its long-term trajectory. For investors, the combination of strong technicals and institutional speculation makes XRP one of the most closely watched assets in the crypto space right now.