XRP price could be eyeing a strong rally as bulls manage to defend a key support, which could act as a springboard for a move to as high as $3.8 in the coming days.

According to data from crypto.news, XRP (XRP) was trading at $2.79, up 3.1% in the past 24 hours and 56% from its lowest point this year. 

The token’s market cap stood at $166 billion, while its trading volume stood 70% higher than the previous day as its price rebounded suggesting demand from spot traders was accelerating amid renewed bullish sentiment.

XRP price set for more upside?

XRP’s gains came as bulls managed to defend the $2.70 support level, a zone that has served as a key support area since mid-July. Analysts believe XRP needs to hold this level to sustain a potential rebound in the coming days.

A look at the daily chart shows that the XRP price has been trading within a descending triangle pattern for the past seven weeks.

For the uninitiated, the pattern, which typically hints at a sustained bearish trend, is formed by a series of lower highs converging toward a horizontal support level. In XRP’s case, the $2.70 level has acted as the base of the pattern and serves as a critical support zone for the token’s price.

Based on the pattern, the token’s price could now be targeting a move to $2.96, which represents the most recent lower high within the pattern.

If bullish momentum remains intact, a breakout above this level could trigger a rally toward $3.88, the projected target based on the height of the triangle. At press time, the target level lies 39% above the current price level.

Multiple bullish catalysts in play

Several recent catalysts could act as a tailwind for the bullish rally.

First, the main catalyst for XRP price this month will be the October deadline for the U.S. Securities and Exchange Commission to greenlight some of its ETFs. As such, the token may benefit from the positive sentiment among investors who anticipate approval now that the odds have increased to over 80%.

Another factor that could support XRP gains is the renewed interest gained from whales recently.

During the two-week market correction XRP faced earlier, whale wallets reportedly purchased over 340 million XRP, equivalent to roughly $962 million, while exchange outflows climbed by $268 million.

This suggests major players could be quietly accumulating XRP, a move that could drive interest among retail traders who closely monitor on-chain whale activity as a signal of potential bullish momentum ahead.

Additionally, institutions also seem to be eyeing XRP. According to an earlier report from crypto.news, Japan-based gaming company Gumi, which is publicly listed and backed by SBI Holdings, has revealed plans to acquire around $17 million worth of XRP for its corporate treasury. 

This development highlights growing recognition of XRP not just as a speculative asset, but also as a long-term store of value for enterprises.