The XRP price has dropped nearly 30% from its December 17 swing high. While this correction has triggered panic and led to billions in liquidations across the market, selling your XRP tokens at this low point may not be the wisest decision. Despite the short-term volatility, multiple catalysts are on the horizon that could propel Ripple’s native token to new heights in 2025 and beyond.
Although XRP surged over 500% in 2024, its growth trajectory is far from over. The digital asset remains undervalued relative to its fundamental developments and upcoming macro-level triggers. Below are five compelling reasons why holding — rather than selling — XRP could be a strategic move for long-term investors.
1. Trump Inauguration Could Spark a Crypto Market Surge
The January 20, 2025 inauguration of Donald Trump, if he assumes office, is widely anticipated to usher in a more crypto-friendly regulatory environment. His victory in the November 5 election was already seen as a bullish signal for digital assets, but the formal start of his administration could amplify market optimism.
Trump has consistently voiced support for blockchain innovation and digital currencies during his campaign. He criticized past regulatory crackdowns and advocated for a U.S.-led approach to crypto development. This pro-innovation stance could lead to clearer regulations for assets like XRP, reducing uncertainty and encouraging institutional participation.
👉 Discover how regulatory shifts could unlock massive gains in the next crypto cycle.
A favorable policy shift under a Trump administration may accelerate adoption of XRP by financial institutions and payment providers, especially given Ripple’s existing partnerships with banks and remittance services worldwide.
2. Gary Gensler’s Exit From SEC May Signal Regulatory Relief
Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC), has long been viewed as a skeptic — even an adversary — of the broader cryptocurrency ecosystem. His aggressive enforcement actions, including the high-profile lawsuit against Ripple in December 2020, created significant headwinds for market confidence.
However, if Gensler departs the SEC in early 2025, it could mark a turning point for crypto regulation. A new leadership team may adopt a more balanced, innovation-supportive approach, potentially reclassifying certain digital assets like XRP as non-securities.
This shift would not only benefit Ripple but also set a precedent for other blockchain projects currently under regulatory scrutiny. Clearer rules mean less legal risk, which attracts institutional capital and boosts investor sentiment.
3. Final Settlement in SEC vs. Ripple Case Could Provide Clarity
While Judge Analisa Torres ruled in July 2023 that XRP is not a security when sold to retail investors, the broader legal battle between Ripple and the SEC remains unresolved. The final settlement terms — particularly around institutional sales — are still pending.
Once fully settled, the case will offer definitive regulatory clarity on XRP’s status in the United States. This resolution is expected to be a major bullish catalyst, similar to how Bitcoin’s ETF approvals removed years of uncertainty.
Historically, regulatory clarity has preceded strong price rallies in other digital assets. For XRP, a clean legal outcome could open the door to listing on more U.S.-based exchanges, inclusion in major indices, and broader financial product development.
4. Altcoin Season May Be Just Around the Corner
After periods of Bitcoin dominance, capital often rotates into altcoins — a phase known as "alt season." Market analysts believe we’re nearing such a cycle following the recent market correction.
Bitcoin typically leads bull runs, but once its momentum stabilizes, investors seek higher-growth opportunities in established altcoins like XRP. With Ripple’s strong use case in cross-border payments and growing global adoption, XRP is well-positioned to benefit.
On-chain data shows increasing wallet activity and exchange outflows for XRP, suggesting accumulation by smart money. If capital begins flowing into altcoins en masse in early 2025, XRP could experience exponential growth.
👉 See how early movers are positioning ahead of the next altcoin breakout.
5. Potential Approval of an XRP ETF
Exchange-traded funds (ETFs) have proven transformative for digital assets. The approval of spot Bitcoin ETFs in January 2024 triggered a massive influx of institutional investment and pushed BTC to new all-time highs.
Bloomberg Intelligence analysts have suggested that XRP and Solana are among the next likely candidates for ETF approval. If regulators greenlight an XRP ETF, it would provide a compliant, accessible avenue for pension funds, hedge funds, and retail investors to gain exposure.
An ETF listing would increase liquidity, reduce volatility over time, and validate XRP as a legitimate financial asset. Given the current demand and Ripple’s enterprise traction, such a product could attract billions in assets under management.
XRP Technical Analysis: Bullish Signals Are Building
Technical indicators suggest that XRP is forming a strong foundation for a major upward move. Tony Severino, a certified market analyst, recently shared insights highlighting several bullish patterns on the three-month XRP/USD chart.
One key signal is that XRP’s three-month candlestick has moved above the Bollinger Band basis for the first time since April 2019 — a rare event that often precedes high-volatility rallies. Additionally, the bands are currently at their tightest width in XRP/BTC trading history, indicating a pending breakout.
The three-month Relative Strength Index (RSI) has crossed above its moving average and is approaching the 50 midpoint. A sustained move above this level would confirm growing bullish momentum.
Further reinforcing this outlook:
- The Fisher Transform is showing a multi-year bullish divergence.
- The Logarithmic MACD indicates weakening bearish pressure and is nearing a bullish crossover.
These long-term technicals align with the fundamental catalysts discussed earlier, creating a powerful convergence of factors pointing toward higher prices.
Frequently Asked Questions (FAQs)
What is the current price of XRP?
As of late December 2024, XRP is trading around $2.32. However, price levels may vary slightly depending on the exchange.
How could Trump’s inauguration affect XRP?
A Trump presidency is expected to bring a more supportive stance toward cryptocurrencies, potentially leading to favorable regulations that boost investor confidence and adoption of XRP.
Why is Gary Gensler’s departure important for XRP?
Gensler has been seen as hostile to crypto innovation. His exit could pave the way for a more balanced regulatory framework, improving market sentiment and opening doors for institutional investment in XRP.
Will an ETF really impact XRP’s price?
Yes. ETF approvals have historically driven significant capital inflows. An XRP ETF would offer regulated exposure, attracting both retail and institutional investors and likely triggering a strong price rally.
Is now a good time to buy XRP?
Many analysts believe the current dip presents a strategic entry point ahead of major catalysts in early 2025, including potential ETF developments and regulatory resolutions.
Could alt season boost XRP?
Absolutely. When capital rotates from Bitcoin into altcoins, high-utility tokens like XRP often see outsized gains due to their growth potential and real-world applications.
Core Keywords:
XRP price prediction, Ripple SEC lawsuit, XRP ETF approval, altcoin season 2025, Trump crypto policy, Gary Gensler SEC departure, XRP technical analysis
👉 Stay ahead of the next big move in crypto — explore real-time data and insights today.