XRP’s price climbed to $2.45 on January 4, 2025, marking a significant resilience from its lowest price of $0.5122 in early November to the current level approaching the $2.50 mark.

Analyst Dom has highlighted Bitcoin dominance (BTC.D), a metric indicating Bitcoin’s market share, as a key factor shaping XRP’s price trajectory. This trend signals a potential turning point for altcoins.

Bitcoin dominance saw a sharp decline, falling to 56.93% from 59.92% on December 20, 2024. Historically, substantial drops in BTC.D have been followed by an altcoin season—periods when investors move capital from Bitcoin into alternative coins like XRP. Dom noted that in previous cycles, such declines triggered XRP price gains of over 1,000%.

Source: Dom on TV

In the current market cycle, Bitcoin dominance has only dropped by about 5%, leaving room for a larger shift. Despite this, XRP has already surged nearly 500% since November 2024, setting the stage for more dramatic moves as the market evolves. That means that bullish price predictions for XRP in 2025 are back on the menu.

The Path to $3 and Beyond

XRP’s rally began in November 2024, breaking past the $1 mark for the first time in three years. Dom called the move “unusual,” as it occurred without the typical drop in Bitcoin dominance that usually accompanies XRP’s gains. With its recent breakout above a symmetrical triangle pattern, XRP is now targeting a resistance level of $3. That’s good news for Ripple and XRP.

Technical indicators reflect the bullish momentum. The Relative Strength Index remains above neutral levels, while the Stochastic Oscillator indicates oversold conditions at 40. However, analysts caution that a daily close below the 50-day Simple Moving Average could send XRP spiraling back to $1.34.

Source: TradingView

Adding fuel to the fire, Ripple initiated 2025 with a substantial transaction of 500 million XRP, valued at over $1 billion. This move, spotted by Whale Alert, has sparked curiosity in the market, as Ripple typically conducts monthly unlocks. Ripple’s CEO, Brad Garlinghouse, expressed optimism, emphasizing the company’s focus on real-world utility despite ongoing legal hurdles.

Ripple vs. SEC—The Legal Endgame Nears

The regulatory environment in the United States may soon see a seismic shift. On January 20, Donald Trump will be inaugurated as the 47th President of the United States, while SEC Chair Gary Gensler will step down. These changes could usher in a friendlier regulatory landscape for cryptocurrencies.

Ripple’s legal battle with the SEC, which has cast a shadow over XRP for years, may also reach a resolution. A settlement or dismissal could clarify XRP’s legal status and set a precedent for other cryptocurrencies. This clarity, coupled with the possibility of spot XRP ETFs gaining approval, could significantly impact XRP’s market dynamics.

Several fund managers, including Bitwise, Canary Capital, 21Shares, and WisdomTree, are eagerly awaiting regulatory green lights for their XRP ETFs. If approved, these funds could attract institutional capital, further boosting XRP’s price.

Michaël van de Poppe, another market veteran, has labeled this phase as the start of a new crypto bull cycle, predicting exceptional returns for altcoins. Crypto analyst Egrag takes an even bolder stance, forecasting that XRP could hit $50 by the end of 2025. While ambitious, such predictions reflect growing confidence in XRP’s utility and adoption. The recent addition of Ripple’s RLUSD stablecoin will also provide another boost to the XRP ledger.

Ripple’s expansion into the stablecoin market with RLUSD and its ability to surpass USDT’s market cap highlight the company’s potential to lead the industry. Garlinghouse remains optimistic about Ripple’s momentum despite the legal and regulatory challenges it faces.