XRP Price Prediction: Momentum Builds Towards Breakout to $2.50 as ETF Approvals and New Token Offering Rumors Ignite Bullish Sentiment

Ripple's XRP token is once again in the spotlight, with traders and analysts targeting a potential breakout to $2.50 as momentum builds around May's key price levels.

May saw cryptocurrency markets largely defined by a lack of volatility, with Bitcoin (BTC) remaining in a tight range ahead of the U.S. futures approval. Surging interest in the world’s second-largest cryptocurrency, Ripple’s XRP token, is being driven by two major catalysts: anticipation of U.S.-based XRP ETF approvals and growing speculation over a potential Ripple ICO aimed at expanding the XRP Ledger’s DeFi ecosystem.

Two Key Levels to Watch As XRP Breakout Prepares

After a strong rally from the $0.30 lows in late 2024, XRP is now trading in a bullish ascending triangle pattern, converging on the $2.00 resistance zone. As of mid-May, XRP is slightly above the lower boundary of this triangle, around the $1.89 level.

Analysts at Brave New Coin highlight multiple key support zones that could keep the triangle intact. These zones are at $1.70-$1.80, which held firm despite some selling pressure around May 12. A deeper support level lies at $1.50, offering another cushion if needed.

Technical indicators show that traders are closely watching the $2.00 resistance zone closely. A breakout above this level, especially in a high-volume environment, could quickly pave the best way to $2.50 and even $3.00.

Rising Hopes for XRP ETF Approvals

A key factor in the bullish XRP narrative is the pending decision on U.S. exchange-traded fund applications. While the Securities and Exchange Commission (SEC) has yet to approve any spot XRP ETFs, crypto analysts believe recent progress on Ethereum ETF talks may bode well for other altcoins to gain institutional exposure.

With several ETF applications pending, crypto traders are keenly watching for any developments.

“If an XRP ETF gets approved this year, we’re talking about a supply shock. Prices could surge well past $3,” one trader said.

Speculation Mounts Over Ripple-Led ICO

In a surprising turn of events, rumors of a Ripple-led ICO are circulating within the crypto community. According to TronWeekly, Ripple may be preparing to launch a native token offering to support the growing DeFi ecosystem on the XRP Ledger.

This move would see Ripple follow in the footsteps of Ethereum (ETH) and Solana (SOL), both of which have thriving DeFi ecosystems powered by their respective blockchains.

Insiders suggest that the ICO could be announced at BlockChain Brew in May. If true, this move would be closely watched by retail and institutional investors.

“If they do an ICO to support DeFi on XRP, it would bring in a whole new audience. We’re talking about millions of traders who aren’t in the crypto market yet,” another trader said.

Key Takeaways for May 2025

With bullish technicals, regulatory clarity, and speculative catalysts aligning, the final weeks of May 2025 could be pivotal for XRP.

Key factors to watch: