Market signals as factors in XRP price fluctuations
Introduction of trade tariffs and market crash in april
In early April 2025, analysts observed that investors preferred XRP over Bitcoin, and activity on the XRP Ledger (XRPL) blockchain experienced a sharp increase. According to data from Glassnode, XRP has significantly outpaced Bitcoin in terms of growth in active addresses. Experts believe this indicates strong interest in the altcoin among retail investors.
However, after a sharp price surge in early March 2025 — triggered by Trump's announcement of including XRP in the U.S. National Strategic Crypto Reserve — the altcoin's price began to decline. In early April, the XRP price dropped to $1.79, falling 40% over the month and reaching a quarterly low.
Investor concerns drove the negative trend amid expectations of a U.S. economic recession and the imposition of trade tariffs on countries such as China, Mexico, and Canada. The sharpest drop occurred on April 9, when new U.S. import tariffs were set to take effect for several foreign countries.
Meanwhile, investment firm Teucrium Investment Advisors announced the launch of its fund based on the XRP cryptocurrency. The Teucrium 2x Long Daily XRP ETF, with the ticker XXRP, became the first exchange-traded fund linked to XRP. Instead of directly purchasing the digital asset, the fund offers trading in futures, options, and repo transactions.
The fund launched trading in early April, a day before the stock market crash, and had no impact on the collapsing XRP price. However, as noted by Bloomberg experts, the launch of such a fund may boost demand for products based on the altcoin and increase the chances of a spot XRP-ETF being approved.
On the day of the stock market crash, U.S. President Donald Trump suspended the introduction of tariffs for 90 days out of concern over a further collapse of global stock and commodity markets and the potential onset of a new financial crisis. Immediately after, a rebound occurred in the crypto market: within less than a week, the XRP price rose by 20% — from $1.79 to $2.15. By the end of April, the XRP cryptocurrency price remained roughly at the same level.
New wave of growth in may
In the first half of May, Bitcoin reached a new all-time high (ATH), pulling altcoins, including XRP, up with it. Other positive factors contributing to XRP's price growth included a slowdown in altcoin sell-offs and increased investor interest. According to CoinMarketCap, XRP's daily trading volume exceeded $10 billion in early May.
This came amid the approval of Missouri State Bill 594 in the United States, which eliminates capital gains tax for the cryptocurrencies Bitcoin and XRP. Additionally, Ripple — the company behind XRP — has entered into new partnerships with the digital bank Zand and fintech company Memo, strengthening its position in the UAE.
XRP price today
By mid-May, the price of XRP had risen to a local high of $2.58, but a decline followed thereafter. The drop in XRP's price is attributed to delays in the launch of an ETF based on the altcoin, as well as a decrease in activity on the XRPL network.
According to analytical services, the number of daily active addresses in May fell to 21,000 — more than five times lower than the figure in December 2024. After peaking, the price of the second-largest altcoin declined by more than 13% by the end of the month.
According to the CoinMarketCap monitoring service, with a market capitalization of $131.5 billion, the current XRP price is $2.23. Over the past year, this figure has increased by 4.5 times, and since the beginning of the year, by approximately 7%.
XRP price: expert forecasts
Overall, the forecast for XRP remains optimistic: according to analysts at JPMorgan, if exchange-traded funds based on XRP are launched, the digital asset's price could rise to $5–$8. Bitget Research's chief analyst, Ryan Lee, offers a similar forecast. More optimistic experts predict XRP could reach $10 by the end of 2025.
Longer-term price forecasts from analysts at TheCrypticWolf and CrediBULL suggest that XRP could reach a range of $10 to $20.
Standard Chartered even believes that by 2028, XRP could surpass Ethereum — the current leading altcoin — by market capitalization and take second place in the overall cryptocurrency rankings.
However, not all analysts are optimistic: some experts point to slowing capital growth and declining profits at Ripple, which could lead to waning investor interest in the long term. According to their estimates, in such a scenario, XRP's value could fall below $2.
