Ripple’s momentum in resolving its legal dispute with the SEC, combined with growing ecosystem utility, has analysts considering whether XRP can reach $7 in 2025. While current price action shows signs of consolidation, multiple bullish catalysts are shaping an optimistic outlook.

XRP Price Tests Resistance in Ongoing Consolidation

XRP is currently trading near a key resistance zone at $2.6549, having faced prolonged consolidation below this level. While technical indicators remain mixed—RSI at neutral levels and MACD showing weakening momentum—a confirmed breakout could set the stage for a 25% rally toward the next resistance zone.

To reach the $7 mark, XRP would need to break into price discovery, targeting the 272.2% Fibonacci extension from its historical $0.3823 low to the $3.40 high. Analysts believe this is achievable if bullish momentum continues to build despite broader market volatility.

Derivatives Data Shows Mixed Sentiment

On-chain analysis from Coinglass highlights contrasting market expectations. While open interest in XRP derivatives has declined, there’s been a sharp spike in trading volume and options activity. A long/short ratio above 2 on major platforms like Binance and OKX reflects trader bias toward further upside.

However, over $20 million in long positions have been liquidated recently, indicating potential volatility and short-term pain for bulls. Still, the growing number of leveraged long positions suggests traders expect XRP to break out of its current structure.

Legal Win and Technical Developments Boost Outlook

Ripple’s tentative $50 million SEC settlement could finally resolve a multi-year legal battle, clearing regulatory uncertainty. Meanwhile, the introduction of an EVM-compatible sidechain for the XRPLedger, due in Q2 2025, is expected to drastically expand its smart contract capabilities.

This upgrade will enable Ethereum dApps to integrate with the XRPL while using XRP as gas via a wrapped version of the token. Combined with progress toward crypto banking licenses and interest in XRP-backed government bonds, Ripple is laying the groundwork for broader institutional adoption.

Analysts Warn of Potential Market Manipulation

Despite the optimism, some experts caution against exaggerated price expectations. VanEck’s Matthew Sigel points to announcements from small-cap firms pledging to buy XRP as possible “pump and dump” tactics. These moves may temporarily inflate prices without long-term follow-through, posing risks for retail investors.

Still, as utility grows and legal clarity improves, the $7 target remains on the table—contingent on sustained momentum and continued ecosystem growth throughout 2025.

Meanwhile, BNB price is set for breakout as rising channel points to $1,000+ surge.