Ripple (XRP) Price Forecast: Could Trump and ETF Approvals Trigger a $5 Breakout?

Speculation is mounting that Donald Trump’s pro-crypto agenda and the launch of XRP futures ETFs could propel Ripple’s XRP to a major breakout toward $5.

With XRP holding firm above the $3 mark, market optimism is intensifying, signaling a potential rally that could reshape the cryptocurrency landscape. The XRP news keeps getting better.

XRP Steadies Above $3 as Bulls Anticipate ETF Launch

XRP has consolidated above $3 in recent days, supported by developments in the broader crypto market and Ripple’s ecosystem. Key among these is Bloomberg’s confirmation that the CME Group will begin listing XRP and Solana futures ETFs on February 10. The announcement has sparked optimism about increased institutional investment in XRP, as the CME Group is a leading platform for derivative trading.

CME Group may list XRP and Solana futures ETFs as early as February 2025. Source:Summers via X

However,XRP’s price movement has been restrained so far, fluctuating within a narrow range of $3 to $3.20. Analysts suggest that the market is waiting for more concrete developments before committing to larger moves. “The listing of XRP futures ETFs is a significant milestone, but the inflows may not be priced in until after February 10,” said James Seyffart, Bloomberg’s ETF analyst.

Adding to the positive momentum is the reduced supply of XRP on major exchanges. Data from CryptoQuant indicates that traders have moved over 100 million XRP—worth approximately $300 million—out of Binance wallets into cold storage since January 16. This decrease in short-term market supply is often seen as a bullish indicator, suggesting holders anticipate higher prices.

Trump Administration Sparks Optimism Among Crypto Enthusiasts

Donald Trump’s White House return has rekindled expectations of a friendlier crypto regulatory climate. Investors are particularly looking at the Securities and Exchange Commission (SEC), presently in the hands of crypto-friendly nominee Paul Atkins pending Senate confirmation.

Donald Trump was sworn in as the 47th President of the United States, boosting confidence across XRP and other crypto communities. Source:Amir via X

The SEC’s new cryptocurrency task force is aiming to bring in stronger guidelines for digital assets, and bulls are optimistic that this could mean the end of Ripple’s lengthy legal battle with the SEC over whether XRP is or isn’t a security. It’s been years of uncertainty for XRP, but there is growing hope that regulatory winds will shift under the Trump administration.

President Trump issued a landmark Crypto Executive Order yesterday to strengthen the United States’ leadership in digital finance. The order establishes the Presidential Working Group on Digital Asset Markets, charged with creating a robust federal regulatory framework for digital assets, including stablecoins. The group will also assess the feasibility of a national digital assets stockpile to bolster U.S. competitiveness in this fast-evolving sector.

Led by White House AI & Crypto Czar David Sacks, the Working Group features high-ranking officials such as the Secretary of the Treasury and the Chairman of the SEC. The directive tasks federal agencies with identifying and revising regulations that may stifle innovation in the digital asset space. Importantly, it prohibits federal agencies from advancing or endorsing Central Bank Digital Currencies (CBDCs), citing potential threats to economic liberty and individual privacy. The order also repeals prior policies that the administration views as obstacles to progress in digital finance.

This initiative highlights the administration’s dedication to establishing the U.S. as a global leader in digital finance by encouraging innovation and dismantling growth barriers. By leveraging expertise from the private sector, the effort seeks to maintain the nation’s edge in the rapidly transforming digital asset landscape.

Source: White House

Technical Indicators Signal a Positive Outlook

From a technical perspective,XRP’s price action remains encouraging. The cryptocurrency has just rallied 7% over two days, strongly catching up to the $3 level. Indicators are showing moderate expansion, such as the Bollinger Bands, where XRP trades at $3.14 near the upper band, suggesting that there is some upside momentum.

Technical indicators suggest XRP could rebound above $3, signaling the potential for a long-term bullish rally. Source:Arman_Charts2025/TradingView

Meanwhile, the Moving Average Convergence Divergence (MACD) has stayed in positive territory but with narrowing histogram bars. A decisive breach of the $3.52 resistance level might open the door for XRP to target $3.70 and beyond. Conversely, a breakdown below $3 could see the price retest support at $2.68.

Could ETF Approvals Propel XRP to New Heights?

Market analysts and AI-driven predictions offer varied forecasts for XRP’s trajectory in 2025. According to AI models like ChatGPT and Grok, the approval of a spot XRP ETF could drive prices to between $5 and $10 under moderate conditions. In more optimistic scenarios, prices could climb to $30 or higher, driven by institutional inflows, speculative buying, and increased utility of the XRP Ledger in cross-border payments.

The potential ETF approval could propel the XRP price to the $10-$16 range. Source:TheCrypticWolf via X

Still, caution is well in place: analysts warn against a “buy the rumor, sell the news” event that could have led to temporary pullbacks in price, similar to what happened with the listing of Bitcoin ETFs in 2024, driving up the BTC prices and then correcting by as high as 21%.

Long-Term Outlook

Technically, XRP’s bullish sentiment remains bullish as long as the price holds above the psychological $3 mark. Source:XRP Liquid Index (XRPLX) via Brave New Coin

Despite short-term uncertainties, the long-term outlook for XRP remains positive. JPMorgan analysts predict that the approval of a spot XRP ETF could attract between $3 billion and $8 billion in inflows, potentially driving prices beyond $5.

As February 10 approaches, XRP’s price movement will be closely watched. The convergence of reduced market supply, regulatory clarity, and institutional interest sets the stage for what could be adefining moment for Ripple’s native cryptocurrency.