XRP Price Rally Fueled by Regulatory Pause and Hopes of a Spot ETF

The digital asset has emerged as a market leader in recent days, gaining momentum from both macroeconomic developments and optimism surrounding regulatory clarity.

The digital asset has emerged as a market leader in recent days, garnering attention for both its macroeconomic sensitivity and the promise of regulatory brightness on the horizon.

Regulatory Pause Fuels Settlement Optimism

XRP’s latest rally comes as a continuation of a significant legal and political saga. The Ripple vs. SEC lawsuit, initiated in late 2020, may finally be nearing resolution.

After a joint request for a suspension of the appeal process, an action that sparked a collective gasp among crypto enthusiasts, Ripple and the SEC have reached an agreement with staff to settle the case, pending a final vote by the Commission. This development follows a series of delays and a change in administration that brought in chair candidates like Paul Atkins, known for his pro-crypto stance.

With the new chair's swearing-in expected soon, the case might be headed for a 3-1 vote in favor of dismissing it, as pointed out by legal analyst Marc Ross. This optimism is contrasted by skepticism from SEC commissioner Hester Peirce, a voice often critical of the SEC's actions.

“This pause isn't just procedural—it could be pivotal,” noted one pro-crypto legal expert, adding that “with Atkins in place, the SEC may finally pivot away from its combative stance on crypto and cooperate with institutions like the Treasury to create a clear regulatory framework.”

XRP ETF Hopes Spark Institutional Interest

In addition to the legal developments, anticipation over the launch of a U.S.-listed XRP exchange-traded fund (ETF) is heating up. As the first ETF to offer leveraged exposure to XRP, Vermont-based Teucrium's fund attracted $36 million in investor inflows over just five days.

While modest compared to Bitcoin ETFs, the new fund's performance highlights the growing interest from institutional investors in alternative digital assets. The possibility of a dedicated spot ETF, like the ones offered by Catvison or Invesco, remains a major catalyst. If approved, it could unlock new liquidity and push the XRP price closer to its 2021 high of $3.55.

“A spot XRP ETF would be a bridge connecting crypto-native assets to traditional finance,” said Bloomberg Intelligence analyst Eric Balchunas, highlighting the potential impact of such a product on the broader market.

Ripple Expands Its Global Footprint

On the company side, Ripple continues to build its ecosystem through international partnerships and strategic expansion. The company recently deepened its ties with Revolut and Zero Hash, aiming to rival major stablecoins like USDT and USDC. In Portugal, Ripple is working with Unicâmbio to facilitate instant digital payments with Brazil, while in South Korea, BDACS has adopted Ripple Custody for safeguarding XRP and RLUSD.

Furthermore, Ripple plans to enable Japanese banks to utilize the XRP Ledger for cross-border payments by 2025. In parallel, it is collaborating with Chainlink to bring RLUSD into Ethereum’s DeFi infrastructure—a move that underscores Ripple’s broader goal of interoperability and integration within the decentralized finance ecosystem.

Technical Levels and Price Predictions

Market analysts are keeping an eye on XRP’s technical indicators to identify its next move. The cryptocurrency has maintained an uptrend, recently bouncing off a key trendline. According to analyst Casi Trades, the $1.90 and $1.55 zones are critical support levels based on Fibonacci retracement levels and Elliott Wave Theory.

“Any drop to these levels could trigger a short-term bounce, but traders should stay grounded and focus on the larger market structure,” Casi advised.

However, prominent analyst Egrag Crypto cautioned that a dip to $1.85 could occur if XRP fails to hold above the $2.30–$2.50 range. Despite the gloomy outlook, Erag remains bullish in the long term, forecasting future targets of $7.50, $13, and even $27, attributing his optimism to macroeconomic tailwinds and historical market patterns.

SWIFT Integration Speculation Adds to Bullish Sentiment

Adding to the Ripple news cycle, rumors of a partnership between Ripple and SWIFT, the global payment messaging network, have been swirling. A former SWIFT employee claimed that banks have tested XRP’s compatibility with SWIFT’s infrastructure.

While neither Ripple nor SWIFT have confirmed these reports, market analyst John Squire recently predicted a formal announcement within a week. Such an integration would mark a significant milestone, potentially allowing major banks to use XRP for cross-border settlements—a goal Ripple has long pursued.

“The SWIFT rumors, if true, could supercharge Ripple’s role in global finance,” said one market observer, highlighting the potential impact of this partnership.

Contrasting Signals in Market Behavior

Despite the bullish drivers, some metrics suggest cautious optimism. XRP’s trading volume has dipped by 13% in the past 24 hours, and open interest in futures markets has declined by 5.3%, according to data from Coinglass