XRP has faced significant price challenges in recent weeks, experiencing a 3% drop to $2.33. However, several factors indicate the potential for recovery and growth in the coming months.

The approval of Ripple's stablecoin RLUSD

Ripple's stablecoin USD, RLUSD, has been approved by the New York State Department of Financial Services (NYDFS). Recently, Ripple's CEO Brad Garlinghouse confirmed the news but did not disclose the exact launch date. Through institutional payments and cross-border transactions, RLUSD will enhance Ripple's ecosystem.

Analysts believe that RLUSD will enhance the role of XRP as a bridge currency and may attract institutional investors. The addition of a stablecoin to Ripple's structure could increase demand and strengthen XRP's position in the payment industry.

Interest in XRP-backed ETFs

There is increasing attention on the potential launch of XRP-based ETFs. Several major asset management companies like WisdomTree, 21Shares, and Bitwise have filed with the U.S. Securities and Exchange Commission (SEC). There are also speculations that even large companies like BlackRock may participate in the bidding process.

The approval of an XRP ETF would therefore open a bridge for institutional and retail investors to invest in the asset. Similar to Bitcoin ETFs, which have attracted billions of dollars in investment, an XRP ETF could significantly expand liquidity and the use of the asset. Analysts believe such an outcome would lead to a significant increase in capital inflow and only contribute to the growth of XRP.

Additionally, the legal battle between Ripple and the SEC continues to be a major factor affecting XRP's price. There is a likelihood of shifting towards a settlement, and this could relate to changes in the enforcement agency in the U.S. as well as the expected departure of SEC Chairman Gary Gensler.

A favorable outcome could help determine whether XRP is a security or not and therefore provide direction. This clarity is expected to increase investor confidence and encourage institutions to participate, laying a solid foundation for price increases.

Analyst predicts strong growth

Famous cryptocurrency analyst Steph has noted that XRP could rise as high as $35 in the near future, with a target of 2025. In his view, the recent price increase on the monthly chart indicates that XRP is appreciating. He points out a 30% price increase and successful breakout from a key resistance level as evidence of strength.

Theo Steph, XRP could increase by more than 1300% compared to its current value. He also urges investors to pay attention to price changes and take profits when prices rise. Steph points out that XRP is rising against BTC, which has been declining since 2018. Since November, the price of XRP has risen against BTC and recent price action has traded according to a bullish flag pattern. With this, in the event of a breakout through key resistance levels, XRP could outperform Bitcoin by up to 78% and attract more investors.

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