XRP price fails to respond to two extremely bullish developments — Here is why

Key takeaways:

The two most bullish occasions ever imagined by XRP (XRP) advocates occurred in 2025, however XRP continues to underperform the cryptocurrency market. On March 6, XRP was listed as a candidate for the United States’ “Digital Asset Reserve,” and Ripple Labs settled a years-long grievance with the US Securities and Exchange Commission on May 8.

XRP fell 6% within the three months main up to May 22, whereas general crypto market capitalization rose 10%. Traders stay longing for a forty five% rally to $3.50, with derivatives metrics signaling rising confidence.

Leverage use ramps up forward of potential spot XRP ETF itemizing

The combination open curiosity on XRP futures on main exchanges jumped to 923 million XRP on May 22, up 31% from two weeks prior. The $2.2 billion place in futures markets alerts rising curiosity from merchants, but it surely is not essentially bullish, as these devices may also be used to speculate on the XRP price draw back.

Some merchants argue that the elevated demand for leveraged XRP positions signifies rising institutional curiosity, particularly as a number of issuers filed for a spot XRP exchange-traded fund (ETF) itemizing within the US. However, the ultimate determination by the US SEC needs to be made in October.

Excessive demand for bullish leveraged XRP causes a constructive funding price, that means longs (patrons) are those paying the carry price. As cryptocurrency merchants are typically optimistic, a 7% to 14% annualized funding price is anticipated in impartial markets, whereas intervals of FOMO can push the indicator above 50%.

The annualized funding price jumped to 19% on May 22, nearing the very best ranges in six months. Still, the present optimism degree is nowhere close to the 100% annualized funding price from Dec. 4, 2024, which adopted a formidable 7-day rally to $2.90 from $1.33. Far from being bearish, the present degree leaves room for bullish positioning on XRP futures markets.

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Favorable regulation opens the door for brand spanking new partnerships and acquisitions

Part of the restricted XRP price upside will be defined by the a number of rejections of US Senator Cynthia Lummis, chair of the Senate Banking Subcommittee on Digital Assets, to meet with Ripple representatives. Ripple CEO Brad Garlinghouse requested on May 19 that the lawmaker “reconsider and be a leader for ALL of crypto,” and talk about “how to make the US the crypto capital of the world.”

There is nothing stopping XRP from hitting $3.50 and even greater, as Ripple Labs is now not going through direct threats from regulators, which paves the best way for partnerships and acquisitions. Historically, XRP has reacted very positively following these bulletins, and the $2.2 billion futures open curiosity might assist catapult XRP price above the present $3.25 all-time excessive.

This article is for common data functions and is not meant to be and shouldn’t be taken as authorized or funding recommendation. The views, ideas, and opinions expressed listed here are the writer’s alone and don’t essentially replicate or characterize the views and opinions of Cointelegraph.