The digital asset
XRP
could be on the verge of a significant rally as investors look ahead to the U.S. Federal Reserve’s December policy decision and the possible green light for spot XRP exchange-traded funds (ETFs). Currently, the token is trading around $2.45, which is 33% below its July peak. Experts believe that
increased regulatory certainty and rising institutional interest
could propel the price
past $5, following a pattern similar to
Bitcoin
and
Ethereum
after their own ETF approvals.
The main driver of
bullish sentiment
is the SEC’s upcoming verdict on
XRP ETF
applications.
Multiple asset managers have started
the 20-day automatic approval period under Section 8(a), which many see as a strong indicator of likely approval. Should these ETFs get the go-ahead, they could attract a wave of institutional capital,
with some estimates pointing to $5 billion
in assets within the first month. This influx could boost daily trading activity and
send XRP’s value toward $5.50
, based on models that compare the situation to the 2024 Bitcoin ETF surge.
Recent trading patterns lend support to this outlook.
XRP jumped more than 10%
on November 10, climbing to $2.60, as traders anticipated ETF launches from companies such as REX-Osprey and Bitwise. The token’s recovery coincided with
increased investments in alternative coin ETFs
, including a $115 million inflow into the
REX-Osprey XRP ETF
.
Technical analysis also points to a potential breakout
: the price has moved back above important resistance near $2.50, with market watchers eyeing $2.60 as the next hurdle before a possible rise to $3 and then $6.
Confidence from major investors in XRP is further reinforced by Ripple’s recent strategic moves.
Ripple’s On-Demand Liquidity
platform now spans more than 30 nations, handling hundreds of millions in transactions each day.
A $500 million backing from Citadel
and Fortress, along with collaborations with Mastercard and Gemini, has enhanced Ripple’s financial standing. These achievements are in line with
AI-based forecasts that see XRP reaching $5
by the second quarter of 2026, provided institutional adoption continues.
Still, broader economic conditions add uncertainty.
The Federal Reserve’s December policy decision
could impact overall market risk appetite, as higher rates often strengthen the U.S. dollar and put pressure on cryptocurrencies. While XRP’s technical outlook remains positive,
some analysts warn that capital shifts
toward AI-related tokens and
meme
coins might slow its
upward momentum
.
Blockchain data also indicates a drop in large holder activity
, suggesting that major investors are being cautious.
The future direction depends on three main factors: ETF approval by the SEC, the Fed’s interest rate path, and ongoing institutional interest.
Should XRP ETFs generate $100 billion
in trading volume by the end of the year, as some predict, the token could follow the success seen by Bitcoin and Ethereum ETFs. On the other hand, delays in regulatory decisions or a more cautious Fed could keep XRP in a consolidation phase for longer.
At present, traders are
watching the $2.45 support
and the $2.70 resistance area as key levels.
A decisive move above $2.70
could pave the way to $2.90, while losing the $2.45 level might lead to a retest of $2.30–$2.10. As the crypto market remains volatile, XRP’s next steps could shape its position in the upcoming bull market.
