August 12, 2025
5 min read
Yashu Gola
XRP has rallied by over 550% since November, surpassing $3 as of August 2025. Technical analyst Gert van Lagen predicts a broader uptrend toward $34 during this bull cycle.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
Source: Originally published at Cointelegraph on Tue, 12 Aug 2025 12:03:20 GMT. Frequently Asked Questions (FAQ)
XRP’s Double Bottom Pattern Suggests Potential 10x Gains
XRP recently broke out of a seven-year double-bottom structure after rising above its neckline near $1.80. Following the breakout, the price pulled back to the neckline, which acted as support—a classic retest signaling a strong breakout and trader confidence in higher prices. Using the 2.00 Fibonacci extension of this pattern, Van Lagen projects a $34 target by mid-2026. This setup mirrors XRP’s 2014–2017 price action, when a similar multi-year base resolved into a parabolic rally, pushing XRP/USD over 100,000% higher. Historically, XRP has experienced outsized moves: it gained roughly 1,072% since the 2022 lows and soared over 1,625% during the 2020–21 rally. XRP’s 2020–21 rally was largely driven by a near-zero interest rate environment in the US. The more recent 2022–25 gains were fueled by progress in the Ripple lawsuit, growing legal clarity, exchange relistings, and optimism around spot ETF approvals. Analysts currently assign a 95% chance of spot ETF approval in 2025, with forecasts suggesting XRP could rally toward $27 if approved—close to Van Lagen’s target.XRP Ledger Metrics Indicate Overvaluation Risks
Despite XRP’s price rally, its parent blockchain, XRP Ledger (XRPL), shows signs of lagging behind other major Layer-1 blockchains like Ethereum. According to DefiLlama, XRPL’s $190 billion market cap is approximately 2,200 times larger than its $85 million total value locked (TVL), a stark contrast to Ethereum’s ratio of about 5.6, even though XRP’s valuation is nearly 40% of Ethereum’s. This disparity has raised concerns about XRP’s extreme overvaluation relative to on-chain activity. As of August 2025, over 95% of XRP’s supply is in profit, a level that historically preceded sharp price corrections during previous rallies in 2020–21 and 2022–25. When a large share of holders are in profit, profit-taking often accelerates, creating sell pressure that could challenge XRP’s ability to sustain an uptrend toward $30.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
Source: Originally published at Cointelegraph on Tue, 12 Aug 2025 12:03:20 GMT. Frequently Asked Questions (FAQ)