XRP price is warming up for a breakout, and current prices may offer a promising entry point for investors, according to analyst Teo Mercer.

In a post on X, Mercer, a Bitcoin analyst with over 2 million followers, stated that XRP is exhibiting “serious signs of life.”

The view suggests that after several months of underperformance, XRP may finally be preparing to move upward. A major factor influencing this perspective is the improving regulatory landscape in the U.S.

XRP’s Realistic Target

Mercer highlighted that as U.S. crypto regulation enters its final stages, the environment is becoming increasingly favorable for XRP. He added that current levels around $2 may present a strong entry point, with the potential for an easy 2x upside.

Specifically, the analyst argued that a move toward the $3 to $4 range for XRP looks realistic in the coming months.

Notably, XRP briefly reached this range in January but faced resistance that has kept its price around $2 over the past seven months. Meanwhile, market watchers are becoming unanimous in their belief that a new breakout to higher price levels is imminent.

Indeed, several efforts in the U.S. to establish a more favorable regulatory environment for crypto are fueling this optimism.

U.S. Regulatory Framework Coming Together

For instance, this month, the U.S. Senate passed the GENIUS Act, which aims to establish the first federal framework for stablecoins. The legislation treats them as payment systems, requiring full backing, transparency, and consumer protections. This lays the groundwork for broader digital asset regulation.

Meanwhile, this week, Republican senators introduced a major crypto bill to provide clear regulatory guidelines for the U.S. crypto industry. The bill seeks to end regulatory uncertainty by defining when a token is a security or a commodity, placing securities under the SEC and commodities under the CFTC. It also reduces the SEC’s authority and positions the CFTC as the primary regulator for the industry.

Building on this momentum, the Federal Housing Finance Agency (FHFA) has directed the $7.8 trillion mortgage giants Fannie Mae and Freddie Mac to recognize crypto assets in qualification assessments.

The agency instructed government-sponsored enterprises (GSEs) to develop proposals for factoring cryptocurrencies into evaluations of borrowers’ financial strength without requiring conversion to U.S. dollars. The new directive aligned with the Trump administration’s pro-crypto stance.

Meanwhile, Ripple and the SEC have settled their years-long legal dispute with a $50 million agreement and dropped appeals, though court approval is still pending.

Essentially, with legal risks reduced, XRP and other crypto assets could benefit from a more supportive environment.

Other “Realistic” Outlooks for XRP This Year

While Mercer has placed up to $4 as a realistic target, some other market watchers are predicting much higher price levels. Analyst Dustin Layton recently claimed that 1,000 XRP, currently worth about $2,000, could generate a $50,000 profit by year-end. 

This implies a 23x return and an XRP price above $52, which he boldly asserted is the “minimum” XRP would deliver for holders. Unsurprisingly, this outlook faced opposition, especially as it would require a $3 trillion market cap for XRP.