XRP's performance this week has indeed been eye-catching, with a gain of over 10%. From a technical perspective, it has broken through the key price range of $0.38 to $0.42. What does this breakthrough mean? It indicates that the bulls have temporarily taken the lead, and the previous resistance level has now become a new support.

Why is there this wave of market activity? The first reason is the overall positive sentiment in the crypto market, with institutional funds starting to flow back in, leading to a rebound. The second is that technical signals have indeed turned positive, and breakouts often attract follow-up buying. The third is that there are rumors that Ripple may have made new progress in cross-border payment collaborations with a major bank, but these rumors have not yet been officially confirmed.

But here, we need to stay calm. First, the SEC vs. Ripple lawsuit is still pending, which is an uncertain factor. If an unfavorable ruling occurs, it could become a bearish catalyst. Second, this rapid increase has already somewhat overstretched short-term technical indicators, and a correction risk is significant. Additionally, the authenticity of the collaboration rumors remains uncertain—blindly chasing the high could lead to catching the last wave.

From another perspective, this market movement resembles the classic "news + technical linkage" pattern at the early stage of a bull market, but it also calls for caution. Short-term prices are influenced heavily by sentiment, but long-term value is the true measure. Instead of betting on short-term fluctuations, it’s better to observe more and operate less.