XRP Price Slumps Despite Positive Market Indicators
Throughout 2025, the cryptocurrency market has seen occasional fluctuations with a major coin, XRP, enduring a bear market. Despite promising news for the wider Ripple network, the XRP price has descended significantly during the course of the year.
At its peak in the year, XRP traded at $2.10, but it has seen a substantial 40% drop in price. The market cap mirrors this downtrend having deflated from $190 billion at the start of the year to stand at a current valuation of $121 billion.
Positive Highlights for XRP
These figures have been disappointing for a currency that has been in the limelight for an array of positive developments. XRP received a major boost when Teucrium launched the 2X Long Daily XRP ETF, a fund named XXRP, which has quickly attracted over $24 million in assets. This new investment vehicle has attracted a lot of interest.
Additionally, multiple established companies, including Grayscale, 21Shares, WisdomTree, Canary, and Franklin Templeton, have applied for spot funds. As the majority of analysts continue to predict that the U.S. Securities and Exchange Commission will approve these applications, the demand and resultant market for XRP may benefit. Current estimates show an approval rate of 77%, making it likelier for institutional investments to stream into the asset in the near future.
XRP has also been mentioned by President Donald Trump as a token that will be integrated into the U.S. government’s strategic reserves. The inclusion in the strategic reserves is a significant development that could remain a major demand driver for the coin.
XRP in 2025: Resolving Legal Disputes
XRP also cleared legal clouds when the U.S. Securities and Exchange Commission dropped its appeal of a lawsuit that had been filed against Ripple in 2020. This move brings to an end one of the longest legal issues in the cryptocurrency industry and removes significant uncertainty hanging over XRP. It is believed that this positive development could accelerate Ripple’s acceptance and adoption by American banks and money transfer companies. The Ripple technology, which is faster and more cost-effective than its competitor, SWIFT, remains at the heart of future optimism.
Other noteworthy developments include Ripple’s stablecoin, Ripple USD, which has witnessed a surge in its market cap, now close to $300 million. This represents substantial growth for the cryptocurrency. Furthermore, in an expansive move, Ripple recently acquired Hidden Road, a prime broker that handles around $10 billion in assets daily. The integration of these transactions into the XRP Ledger network is an anticipation that will likely boost demand and benefit prices.
XRP Price: A Technical Outlook
The overall account from a technical perspective, however, paints a less rosy picture. The XRP price has been under pressure for the past few months, with it still trading below the 50-day Exponential Moving Average and the descending trendline. The price trend in recent months forms a falling wedge pattern which is often regarded as a bullish reversal sign.
If the pattern holds, experts anticipate a strong bullish breakout for the coin with the first target set at $3.40, its highest level for this year. A convincing break above this level could open the path for XRP to reach $5.
While the bullish indicators are present, it is important to note that a strong downtrend could still occur if the price drops below the low seen this month at $1.6110. Therefore, potential investors should carefully consider both the positive aspects and the potential risks when trading cryptocurrencies like XRP.
With future developments and the potential wider adoption of Ripple’s technology, it will be interesting to see where the XRP currency heading looking forward into 2026 and beyond.
