XRP Surges Past $3 for the First Time Since 2018 – What’s Driving the Rally?

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XRP has surged past $3 for the first time since 2018, marking a pivotal moment in its 2025 price trajectory. With a 41% gain over just 15 days, XRP is outperforming all top 10 cryptocurrencies and capturing significant market attention. This rally isn’t just about price—it’s backed by growing institutional interest, regulatory momentum, and strong on-chain activity from large holders, commonly known as “whales.”

According to CoinMarketCap data, XRP is now within 17% of its all-time high of $3.84. At its current market cap of approximately $170 billion, XRP has surpassed financial giant BlackRock in valuation—a symbolic milestone that underscores its growing influence in the broader financial ecosystem.

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Regulatory Tailwinds Fuel Investor Confidence

A key catalyst behind XRP’s surge is the shifting regulatory landscape in the United States. The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) over the classification of XRP has created years of uncertainty. However, recent developments suggest a turning point.

With increasing calls for digital asset regulatory reform, there's growing optimism that a pro-crypto administration could accelerate approval processes for critical financial products—most notably, a spot XRP ETF. Diego Cardenas, an OTC trader at digital asset platform Abra, stated in a recent report that market sentiment is being driven by expectations of an imminent ETF approval.

Moreover, Ripple executives—including CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty—have reportedly engaged directly with incoming U.S. administration officials. These high-level discussions signal a potential shift toward a more favorable regulatory environment for digital assets like XRP.

This evolving stance could pave the way not only for an XRP ETF but also for broader adoption of blockchain-based financial infrastructure in traditional markets.

Whale Accumulation Signals Strong Long-Term Conviction

One of the most telling signs of XRP’s strengthening fundamentals is the continued accumulation by “whales”—wallets holding between 1 million and 10 million XRP tokens.

Data from analytics firm Santiment reveals that since November 12, whale addresses have added approximately 1.4 billion XRP to their holdings—worth around $3.8 billion at current prices. Notably, this accumulation has persisted even during periods of price consolidation following the December 2024 peak.

Such sustained buying pressure from large investors often precedes significant price movements. It suggests strong conviction in XRP’s long-term value proposition, especially amid favorable regulatory developments and expanding use cases.

XRP Search Popularity Outpaces Bitcoin

In a striking indicator of rising public interest, global Google search volume for "XRP" surpassed that of "Bitcoin" on January 15. According to Google Trends data, this marked the second time in the past year that XRP has overtaken BTC in search popularity—the first occurring in November 2024.

This surge in search interest reflects growing awareness and curiosity about XRP’s unique positioning in the crypto market. Unlike Bitcoin, which primarily functions as digital gold, or Ethereum, which powers decentralized applications, XRP is designed for fast, low-cost cross-border payments—a use case increasingly relevant in today’s globalized economy.

The heightened attention also aligns with Ripple’s ongoing expansion of partnerships and its launch of RLUSD, a stablecoin pegged to the U.S. dollar. These developments further strengthen XRP’s ecosystem and utility.

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Spot Demand Drives Rally – Not Futures Speculation

While Bitcoin and Ethereum saw record futures open interest during previous bull runs, XRP’s current rally is being fueled primarily by spot market demand rather than leveraged trading.

Dom, an order flow analyst, noted that XRP’s retest of the $3 level was entirely driven by organic spot buying. During a week when XRP rose 15%, both funding rates (a measure of futures market leverage) and spot buy-side premiums remained relatively stable—indicating minimal speculative overheating.

“If this were happening with Bitcoin,” Dom remarked, “I’d be calling for a massive breakout immediately.” The fact that similar momentum is building in XRP without excessive leverage makes the current rally more sustainable and less prone to sharp corrections.

Technical Outlook: Is $10 or Even $18 Possible?

From a technical perspective, XRP broke out of a long-term bullish flag pattern at the end of 2024 after posting a 105% annual gain. This breakout signals strong upward momentum and sets the stage for further appreciation.

However, the Relative Strength Index (RSI) currently sits at 79.5—well into overbought territory. While this may lead to short-term consolidation or a pullback, it doesn’t necessarily negate the longer-term bullish outlook.

Dark Defender, a prominent technical analyst, highlighted a “confirmed upward breakout” on XRP’s monthly chart, drawing parallels to the 2017 bull run when XRP surged by 1,022%. Using Fibonacci extension levels based on that historical move, he projects potential price targets of $10.23** or even **$18.23 in 2025.

Whether these targets represent a “moonshot” or a “mars mission,” they reflect growing confidence among analysts that XRP could enter uncharted price territory this year.

Frequently Asked Questions (FAQ)

Q: Why did XRP break above $3 after years?
A: XRP’s breakout above $3 was driven by a combination of positive regulatory developments, whale accumulation, rising search interest, and growing expectations around a spot XRP ETF approval—especially under a potentially pro-crypto U.S. administration.

Q: Is XRP a good investment in 2025?
A: Many analysts view XRP favorably due to its strong fundamentals, real-world use in cross-border payments, and improving regulatory clarity. However, investors should consider risks such as market volatility and ongoing legal uncertainties before investing.

Q: Can XRP surpass Ethereum in performance?
A: Some market participants believe so. Despite Ethereum’s stronger technical ecosystem, XRP benefits from proactive regulatory engagement and faster transaction speeds—factors that could drive superior price performance in the short to medium term.

Q: What factors could cause XRP to drop?
A: A rejection of the spot ETF proposal, negative regulatory rulings, or broader crypto market downturns could trigger a correction. Additionally, its current RSI level suggests a potential pullback is possible if profit-taking increases.

Q: How does whale activity affect XRP’s price?
A: When large holders accumulate significant amounts of XRP, it reduces circulating supply and signals confidence in future price growth. Sustained whale buying often precedes major rallies.

Q: Where can I track XRP price movements securely?
A: Reliable platforms offer real-time data and secure trading environments for monitoring and investing in XRP.

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Core Keywords:

With strong fundamentals, increasing institutional interest, and favorable macro tailwinds, XRP is positioned as one of the most watched digital assets of 2025. While short-term volatility remains inevitable, the long-term outlook continues to brighten for this payments-focused cryptocurrency.