XRP Price Prediction: XRP Rally Gains Momentum — Can It Reach $3 by May?

Driven by growing institutional interest, positive developments in the Ripple lawsuit, and favorable macroeconomic conditions, XRP appears poised for a breakout that could define its trajectory for the remainder of 2025.

As of Friday, the XRP price is holding above $2.21, reflecting over 3% daily gain. This price movement comes in tandem with an 83% surge in daily trading volume, reaching approximately $4.4 billion. The uptick in trading activity indicates heightened interest from both retail and institutional investors. The overall market capitalization of XRP has also climbed to nearly $128 billion, reinforcing its standing among the top digital assets.

XRP Price Rally Supported by Whale Activity and Derivatives Market

One of the key drivers of the recent XRP rally has been increased accumulation by large holders. According to Santiment, wallets holding between 10 million and 100 million XRP now control 12.22% of the supply—up from 10.47% in late February. This 1.75% rise suggests growing confidence among whales that a significant bullish move is imminent.

XRP was trading at around $2.21, up 3.39% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

The derivatives market echoes this sentiment. Open interest in XRP has risen by 2.46%, with options open interest spiking over 20% to reach $1 million. The long-to-short ratio currently stands at 1.0218, signaling a bullish bias among traders. This data supports the notion that XRP’s current momentum isn’t just speculative—it’s backed by capital flow and strategic positioning.

Technical Indicators Point to $3 Breakout Potential

Technically, XRP is approaching a strong resistance level of $2.21, which is the crossing point of its 50-day and 100-day exponential moving averages (EMAs). Breaking above this level could see it travel to $3—a level not seen since early March.

XRP price could hit the weekly 61.8% Fib level, targeting $3.20–$3.43 following the current bullish momentum. Source: ThatBeardedDude on TradingView

The Relative Strength Index (RSI) has crossed 70 now, generally a bullish sign though sometimes it can also show overbuying. Then, the SuperTrend indicator shows that the resistance is intact and could mean there is still no strong confirmation required before going the entire distance along the uptrend.

If XRP is reversed at current resistance, the 200-day EMA of $1.99 can serve as a very important support level. Even a sharper correction could see a retest of the low of April at $1.62.

XRP SEC Lawsuit Update Fuels Long-Term Optimism

XRP’s stellar performance in 2025 also owes something to developments in the ongoing legal war between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The SEC finally withdrew its appeal to dispute XRP’s status as a result of its classification as non-security by the court, ushering in regulatory clarity that many in the crypto world have seen as a go-ahead to broader adoption.

Ripple CEO Brad Garlinghouse has already stated that the resolution of the XRP lawsuit provides “regulatory clarity that very few other tokens have,” and this makes Ripple XRP news a draw for institutional investors.

This court victory, followed by a possible XRP exchange-traded fund (ETF), is catching the attention of large finance industry players. In the first quarter of 2025, XRP-linked exchange-traded products (ETPs) saw $37.7 million in inflows, with the year-to-date total reaching $214 million.

Institutional Adoption and ETF Buzz Drive Bullish Outlook

The growing adoption of XRP by institutional players adds further weight to bullish XRP price predictions. The CME Group’s plans to launch XRP futures, along with ETF filings by leading asset managers, signal growing confidence in Ripple’s ecosystem.

Brad Garlinghouse revealed that CME Group will launch XRP futures on May 19th. Source: AllThingsXRP via X

Analysts now believe that XRP could reach new all-time highs. One particularly optimistic forecast by “Steph is Crypto” suggests that XRP could hit $12 in the long term, based on historical market cycles. Meanwhile, an Elliott Wave analysis highlights a potential rally to $7 if the token breaks above the $3.6 threshold.

This kind of speculation is supported by broader crypto market conditions. Following the Federal Reserve’s decision to keep interest rates steady at 4.25%-4.5%, risk-on sentiment has returned to the market. The Fed Chair Jerome Powell indicated that future rate hikes are unlikely unless inflation surges dramatically, a scenario that favors crypto investments like XRP.

Final Thoughts: XRP Value Outlook Remains Bullish

With strong support from whale activity, increasing institutional interest, and favorable regulatory developments, XRP’s outlook remains bullish. A confirmed breakout above $2.21 could send XRP price soaring toward the highly anticipated $3 level and possibly beyond in the coming weeks.

While short-term volatility remains a factor, the underlying fundamentals of Ripple currency price dynamics, combined with technical strength, position XRP as one of the most promising assets in the current crypto market landscape.

As always, investors should monitor both Ripple market movements and updates in the Ripple lawsuit for clues on where the XRP value might head next.