XRP (XRP) Price: Can Fed’s New Banking Rules Fuel a Rally to $10?

TLDR

Federal Reserve has withdrawn crypto guidance for US banks, no longer requiring prior approval RLUSD stablecoin has reached $294M market cap with recent 45% volume surge XRP currently trading around $2.19, entering a key demand zone on technical charts CME Group plans to launch XRP futures on May 19, pending regulatory review Price could potentially reach $2.72 in the short term if buyers overwhelm sellers

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XRP (XRP) price is showing signs of consolidation at $2.19, with traders eyeing potential breakout scenarios following significant developments in the regulatory landscape and derivatives market. The cryptocurrency has entered what analysts identify as a demand zone, suggesting potential for upward momentum if buying pressure increases.

XRP Price

The US Federal Reserve recently announced the withdrawal of guidance on how banks interact with crypto assets and USD-backed stablecoins. This policy shift means US banks will no longer need to seek prior approval before engaging in cryptocurrency and stablecoin activities.

“The Board will no longer expect banks to provide notification and will instead monitor banks’ crypto-asset activities through the normal supervisory process,” the Federal Reserve stated.

This regulatory change comes as Ripple’s RLUSD stablecoin continues to gain traction in the market. The stablecoin now boasts a market capitalization of approximately $294 million.

Market Response and Trading Activity

Recent data shows RLUSD volumes surged by 45% as traders responded positively to the Fed’s policy change. Many market participants believe this new approach could accelerate adoption of US-made stablecoins like RLUSD.

XRP has experienced choppy price movements following a rally that stalled at the $2.30 barrier. The cryptocurrency currently trades within a demand zone where previous buying activity was concentrated.

Technical analysis reveals the altcoin could target the $2.72 resistance level if it manages to bounce from this zone. However, a drop below $1.90 would invalidate this bullish outlook.

Source: TradingView

The Relative Strength Index (RSI) has bounced off the 50 level, potentially indicating rising bullish momentum. Yet, the RSI line continues to oscillate below the signal line, suggesting buyers haven’t fully taken control of price action.

Institutional Interest Growing

In a major development for the XRP ecosystem, CME Group announced plans to launch XRP futures on May 19, pending regulatory review. Traders will have the option to choose between a 2,500 XRP micro-sized contract and a larger 50,000 XRP contract.

Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, explained that this new investment vehicle aims to serve the evolving digital asset landscape, which has experienced increased interest in XRP-linked products among both institutional and retail investors.

The introduction of XRP futures will expand CME Group’s cryptocurrency offerings, which already include Bitcoin futures, Ether futures, and Solana futures and options.

Coinbase derivatives also launched XRP futures earlier this week, providing market participants with new tools to manage risk and gain exposure to the cryptocurrency.

These developments highlight growing institutional and retail interest in XRP as a tradable asset.

Despite these positive catalysts, derivative market data shows some hesitation among traders. According to Coinglass, Open Interest (OI) declined by 0.21% to $3.86 billion in the last 24 hours, potentially signaling waning confidence during the current consolidation phase.

Long liquidations have outweighed shorts, hinting at mounting bearish pressure. Over the past 24 hours, long liquidations totaled $5.63 million, compared to $1.99 million in short liquidations.

Long-Term Price Potential

Some analysts remain bullish on XRP’s long-term prospects. Analyst BarriC suggests that XRP could potentially rally to $10 towards the end of 2025 as US banks and institutions begin adopting Ripple technology.

$XRP starts by hitting $3

Then $XRP skyrockets from $3 to $5

Then as the volatility and momentum of an alt season kicks in$XRP skyrockets to $10-$20

Once we have entered into double digit #XRP territory we may see the market dip back down into a bear market

However towards…

— BarriC (@B_arri_C) April 24, 2025

Other bullish catalysts, such as potential inflows to spot XRP ETFs according to JPMorgan analysts, might also drive such a rally.

The weekly chart shows XRP has entered a demand zone where buying activity was previously concentrated. If XRP bounces from this demand zone, the immediate target lies at the $2.72 resistance level.

Should XRP flip this resistance, it could kickstart an uptrend past $3, potentially setting up for new all-time highs.

However, the Awesome Oscillator (AO) histogram bars are decreasing despite remaining above the zero line, indicating weakening bullish momentum. This suggests XRP might oscillate within the demand zone until a surge in buying pressure triggers a stronger move.

The recent change in guidance by the Federal Reserve suggests RLUSD stablecoin might gain widespread adoption, potentially supporting an XRP price rally. Meanwhile, XRP continues to trade within a demand zone where buyers were previously active.

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