After a prolonged period of consolidation, XRP experienced a dramatic resurgence by the end of 2024, driven by key events reshaping the cryptocurrency landscape. The asset's trajectory indicates a bright outlook for 2025, with bullish momentum and potential catalysts pushing XRP to new heights.
Milestone victory and market rebound
The rise of XRP can be traced back to a favorable ruling by Judge Analisa Torres in August 2023 in the SEC case. The court confirmed that XRP sales on exchanges are not securities, marking a huge victory for Ripple and the broader cryptocurrency market.
Despite being fined $125 million for being considered an unregistered security due to institutional sales, Ripple's decision further clarified the regulatory status of XRP, laying the groundwork for its future.
However, XRP's price remained depressed until November 2024, when a significant shift occurred in the cryptocurrency landscape. Donald Trump's re-election, coupled with the resignation of SEC Chairman Gary Gensler, sparked optimism throughout the market.
As a result, XRP broke through years of resistance, surging over 450% on December 3, peaking at $2.90. It surpassed other top cryptocurrencies, reaching a market cap of $154 billion.
ETF prospects and institutional adoption
As 2025 approaches, XRP is expected to benefit from its growing institutional appeal. With Bitcoin and Ethereum ETFs set to be approved in early 2024, the focus has shifted to XRP.
Well-known asset management firms like Bitwise, 21Shares, and WisdomTree have submitted XRP ETF applications. Although ongoing appeals by the SEC may delay approval, the new government's supportive stance on crypto under Donald Trump has boosted investor confidence.
Industry leaders predict that an XRP ETF could be approved by mid-2025, unleashing a significant influx of institutional funds. Some believe this could be a potential catalyst for XRP's price to soar to $35 next year.
The role of RLUSD in the Ripple ecosystem
RLUSD, a stablecoin pegged 1:1 to the US dollar developed by Ripple, further solidified its ecosystem. Launched in December 2024 after receiving regulatory approval from NYDFS, it is expected to compete with mainstream stablecoins like USDT and USDC. Partnerships with major exchanges ensure the liquidity of RLUSD, enhancing the utility and adoption of XRP.
Ryan Lee from Bitget Research believes that the success of RLUSD will strengthen XRP's financial ecosystem, while James Davies calls for increased transparency of RLUSD reserves.
Price targets and market sentiment
XRP added over 720,000 new holders in 2024, most of whom joined in the fourth quarter. As the asset approached the key resistance level of $3.55, the significant increase in adoption boosted bullish sentiment. Breaking through this level could open the door to new highs, while failing to do so could lead to a pullback to support levels of $2 or below $1.
A hopeful year
As Ripple overcomes regulatory hurdles and expands its ecosystem, XRP's outlook for 2025 seems brighter than ever. According to Bitstamp, the world's longest-running exchange, XRP is set to make history in the cryptocurrency market next year.
The combination of institutional interest, ETF possibilities, and a supportive regulatory environment for crypto could propel XRP to unprecedented levels, solidifying its position among top cryptocurrencies.