With its price hovering at $3.17 as of January 22, 2025, and a 2.92% increase from the previous day, the question arises: is XRP poised for another significant rally, or has it already peaked?

A Look Back: XRP’s Historical Context

The journey has been far from smooth for XRP. This cryptocurrency, around 2017-2018, peaked at almost $3.70 as the price continued its bull cycle.

Futurist and founder of Quant Index, Armando Pantoja says during that period, Bitcoin was selling at around $10,000-$12,000 which influenced the price of altcoins, but that didn’t make much difference in XRP because of regulatory hitches. It has faced its share of litigation thanks to the U.S. Securities and Exchange Commission.

XRP is trading at $3.22, up 3.2% in the last 24 hours. Source:XRP Liquid Index (XRPLX) via Brave New Coin

“The SEC pressure kept XRP from fully participating in the bull run,” Pantoja explained. Despite this, he remains optimistic, suggesting that XRP could potentially reach $8 in the upcoming bull cycle, fueled by Bitcoin’s halving and broader market trends.

The Role of Institutional Interest and Regulation

The SEC recently announced the formation of a cryptocurrency task force led by Commissioner Hester Peirce, which has reignited optimism among XRP investors. It will establish a regulatory framework pertaining to digital assets comprehensively, thus paving the way toward solving the case between the SEC and Ripple after all these years.

XRP’s legal hurdles are expected to be eased following the arrival of Trump’s pro-crypto administration. Source: Danny via X

Ripple’s Chief Legal Officer Stuart Alderoty said he was hopeful for a new era of collaboration with regulators, saying: “Looking forward to working with the Crypto Task Force to undo the prior administration’s damage,” he wrote in a recent post on social media.

The institutional interest in XRP has also skyrocketed, with asset managers filing applications for a record 11 XRP-based ETFs. These surging ETF filings, together with ongoing XRP withdrawals from leading exchanges like Binance and Upbit, suggest that investors are confident in the asset’s long-term potential.

A slew of new crypto ETFs have been applied for, Source: X

Technicals Point to a Bullish Continuation

From a technical perspective, XRP appears to be consolidating within a bullish flag pattern, trading between $2.90 and $3.38. If XRP breaks above the flag’s upper boundary with strong volume, analysts predict a continuation of its uptrend, potentially pushing the price to new all-time highs above $3.55.

According to market analysts, XRP’s daily chart bull flag remains in play. Source: Seekingpips/TradingView

On the downside, XRP has established support at $2.90. However, a daily close below $2.33 could invalidate the bullish thesis, raising concerns among traders.

Diverging Opinions on XRP’s Future

Opinions on XRP’s long-term potential remain divided. Rob Nelson, a market commentator, cautioned investors, stating, “If you’re chasing XRP now, you might have missed the window.” While acknowledging the risks of investing at current levels, he highlighted the tendency for late entrants to chase trends.

With strong bullish fundamentals, $XRP could surge to $8 before reaching its cycle peak. Source: Milkybull_Crypto via X

On the other hand, Pantoja offered a more optimistic perspective. “A lot of its growth may be gone, but it’s not all the way over. XRP is still likely going to $8, maybe even higher,” he said, emphasizing its potential return despite higher risks.

Catalysts for Future Growth

The next Bitcoin halving, which is expected in 2025, is generally considered the main driver for the next crypto bull cycle. Historically, Bitcoin’s halvings have lifted the entire market, including altcoins like XRP. According to analysts, even without groundbreaking developments, the positive news cycle means the XRP price could ride this cyclic market trend.

Furthermore, Ripple’s increasing institutional partnerships and its potential role in central bank digital currency (CBDC) projects could serve as further catalysts for XRP’s price growth.

With XRP continuing to wind through a complex landscape of technical indicators, regulatory developments, and market dynamics, the debate about its future is very much alive. Some believe that the best days of XRP are behind it, while others think that the cryptocurrency still has room to grow and may reach new heights in the coming bull cycle.

It remains to be seen whether XRP can clear key technical levels and shake out the implications of the SEC’s change in stance on crypto regulation. Anyway, as it is, whether Ripple’s XRP manages to break through some more key levels or not makes it one of the closely watched assets in the crypto market.