- XRP surged to $2.65, briefly overtaking USDT, driven by optimism over a potential SEC settlement and the prospect of an XRP-spot ETF.
- Investor confidence is rising as XRP holders increase and adoption grows, positioning the token for a possible retest of its 2018 record high.
XRP is making headlines after briefly surpassing USDT to become the third-largest cryptocurrency by market cap, driven by growing optimism around its ongoing legal battle and a potential XRP’s-spot ETF approval.
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Legal Clarity Powers XRP Price Momentum
On May 12, XRP rallied to $2.6554—its highest level since early March—boosted by rising investor confidence that Ripple and the SEC are nearing a settlement. This development could lift the sales ban on institutional XRP’s transactions and reduce Ripple’s $125 million penalty.
If the court accepts the SEC’s motion to withdraw its appeal on the Programmatic Sales ruling, it could remove a key barrier to ETF approval. This scenario mirrors bitcoin’s journey, where spot ETF demand contributed to BTC’s January 2025 all-time high of $109,312. An XRP-spot ETF, if approved, could push XRP closer to its 2018 record of $3.5505.
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Holder Growth Reflects Bullish Sentiment
Investor faith in XRP’s future appears to be growing. According to Santiment, XRP holders have increased by over 11% year-to-date in 2025. Additional adoption catalysts include Missouri’s new law exempting capital gains on crypto—including XRP—from state income tax, and Travala.com’s decision to accept XRP as a payment option.
These developments signal a broader shift toward real-world adoption and suggest institutional investors are preparing for a regulatory green light.
Short-Term Outlook: Key Levels and Risks
XRP closed May 12 at $2.5448, up 7.53% on the day and outperforming a crypto market that slipped 0.42%. The bullish daily chart suggests a breakout above $2.50 could open the door to testing $3.00. However, technical support remains at $2.10, and investor focus will stay locked on legal rulings, ETF news, and macroeconomic developments.
In contrast, bitcoin pulled back slightly despite surpassing $105,000 earlier in the session. The US-China tariff truce helped ease recession fears, lifting equities and hinting that crypto may follow suit as trading volumes rise.
With the Ripple-SEC case nearing resolution and ETF optimism building, It is gaining momentum. While challenges remain, XRP’s recent surge and rising adoption show that a renewed bullish phase may just be getting started. If regulatory clarity emerges, the $3.00 mark—and even the 2018 record—may not be far off.
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