XRP price rebounded above $2.42 on Friday, marking a **28% recovery** from the weekly low of $1.90. Analysts attribute this surge to the U.S. SEC initiating settlement talks with Ripple and speculation about BlackRock launching altcoin derivatives. This article explores the factors driving XRP’s rally and its potential trajectory.
Key Catalysts Behind XRP’s Price Surge
1. SEC’s Potential Commodity Classification for XRP
XRP reclaimed the $2.30 support level amid reports that the SEC may classify it as a commodity in settlement discussions with Ripple Labs. This regulatory clarity could:
- Eliminate legal uncertainties.
- Boost institutional adoption.
- Pave the way for an XRP ETF approval.
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2. BlackRock’s Altcoin ETF Speculation
Nate Geraci, Co-Founder of The ETF Institute, predicts BlackRock may file for XRP and Solana ETFs once the SEC lawsuit concludes. BlackRock’s dominance in Bitcoin and Ethereum ETFs suggests it could lead altcoin ETF adoption, further fueling XRP’s appeal.
3. XRP ETF Approval Timeline
Experts anticipate an XRP ETF could be approved by late Q3 or early Q4 2025, contingent on:
- Ripple’s legal resolution.
- XRP’s commodity status.
- Institutional demand mirroring Bitcoin ETF inflows ($5 billion projected).
XRP Price Forecast: Can It Reach $3.40?
Technical Analysis Highlights
- Current Price: $2.42 (28% weekly gain).
- Key Resistance: $2.99 (Donchian Channel upper band).
- RSI Momentum: 50.89, signaling bullish potential.
- Market Cap Target: $200 billion (requires XRP at $3.40).
Bullish Scenario
- Break above $2.99 could propel XRP to **$3.40**.
- ETF approval may trigger institutional inflows, replicating Bitcoin’s 2024 rally.
Bearish Risks
- Failure to hold $2.30 support may retest **$1.90**.
- Delays in ETF approvals or regulatory setbacks could dampen momentum.
FAQs About XRP’s Price Rally
1. Why is XRP’s price rising?
XRP’s rebound stems from SEC settlement talks, commodity classification hopes, and BlackRock ETF speculation.
2. How high can XRP go?
A break above $2.99 resistance could target **$3.40**, pushing its market cap toward $200 billion.
3. When might an XRP ETF launch?
Late 2025 is plausible if Ripple’s legal issues resolve and the SEC grants commodity status.
4. What risks could derail XRP’s rally?
Regulatory delays or failure to hold key support levels ($2.30) may trigger corrections.
5. How does XRP compare to Bitcoin ETFs?
Like Bitcoin’s ETF-driven rally, an XRP ETF could attract $5 billion in inflows, per analyst estimates.
Conclusion: XRP’s Path to $200 Billion Valuation
XRP’s rally hinges on regulatory milestones and institutional interest. With ETF approvals and commodity classification on the horizon, XRP could outperform in 2025.
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