XRP Breakout: rise in Q1, on-chain strength and Ripple movements signal a trend t

After a long downtrend, XRP is now showing many bullish signals. Its on-chain fundamentals are undergoing a strong positive shift, and the cryptocurrency is currently consolidating just below a key Fibonacci resistance level, fueling discussions about a significant price breakout. Some market analysis, including points from Messari's report highlighted on their X account (@MessariCrypto), indicates that this digital asset could rise above $3 and may even reach the $5 mark.

The fundamental principles of XRP shine: Market capitalization in Q1 increased, active addresses surged by 142% According to Messari's report, XRP is one of the few major cryptocurrencies that recorded an increase in market capitalization in Q1 2025, rising 2% quarter-on-quarter. This is in stark contrast to the cryptocurrency market as a whole, where Bitcoin, Ethereum, and Solana all fell by more than 20% during the same period. In addition to market capitalization, the daily active addresses of XRP have surged impressively by 142% compared to the previous quarter, reaching 134,600. This figure marks the highest growth since Messari began reporting. The average daily transactions for XRP have also increased to 2.04 million. These transactions are primarily driven by payment volume, highlighting the established role of XRP as a payment-focused digital asset. XRP Ledger Evolves: EVM Sidechain, Native Smart Contracts Expand Utility The XRP Ledger (XRPL) itself is also making moves to expand beyond the payment scope. Ripple's EVM-compatible sidechain has been operational on the testnet, allowing Ethereum-style smart contracts to run alongside the streamlined native chain of XRP. Interestingly, XRPL is also preparing to integrate native smart contract support through "Extensions" without affecting its core architecture. This could open the door to a new wave of decentralized applications and DeFi use cases. Ripple's RLUSD stablecoin, the Hidden Road agreement boosts XRP's appeal to institutions Contributing to this growth momentum, Ripple's stablecoin, RLUSD, has reached a market capitalization of $44.2 million just weeks after its launch. Backed by US dollar deposits and short-term Treasury, RLUSD is set to play a crucial role in the evolving ecosystem of XRP, especially as it can be used on both Ethereum and XRPL. In addition, Ripple's acquisition of the major brokerage firm Hidden Road has positioned XRPL as the foundational layer for institutional cryptocurrency finance. RLUSD is expected to be used as collateral on these platforms, providing broader utility for XRP in high-volume trading environments.

A decisive move breaking through the next resistance level at Fib 0.382 ($2,5430) could trigger a momentum push towards the previous high of $2.82, followed by the Fib 1.618 extension target at $3.29. Upon a full breakout, long-term targets will aim towards $4.04, $4.78, and even $5.25, corresponding to the Fibonacci extension levels of 2.618, 3.618, and 4.236. Moreover, the Relative Strength Index (RSI) is currently at a resistance level of 52.76, indicating that XRP is neither overbought nor oversold — a perfect setup for a sustainable bullish trend if a bullish catalyst emerges.