XRP Gains Momentum: Funds Rapidly Shift Towards Ripple - Exploring the Implications of This Trend
Ripple's cross-border token, XRP, ain't been able to recapture its mojo from late '24 and early '25 when it soared from $0.6 to $3.4. For the past few months, the asset's been stuck in a consolidation phase within a narrow bracket between $2.1 and $2.4, with a few unsuccessful breakout attempts here and there.
But it's a different story as of late, thanks to recent data from Glassnode. According to these figures, XRP is once again leading the charge when it comes to capital rotation, surpassing its rival, SOL. This shift in capital could potentially trigger a significant change in the narrative surrounding XRP and its price movements.
Realized Capital Flows
Glassnode's graphs show that XRP has outperformed SOL in terms of 30D Realized Cap changes since the end of March. In early March, XRP briefly touched $3, but then the trade war kicked off, causing both the price and the metric to plunge. However, XRP rebounded briefly in early May before SOL took the lead, but in the past few days, XRP has retaken the top spot.
Consequently, Glassnode suggests that this surge in capital rotation into XRP indicates "stronger short-term conviction."
The Reasons Behind It
The primary reason for XRP's renewed position is the renewed hope for spot Ripple ETF approvals. Most recently, the SEC gave the green light to a Nasdaq crypto US settlement price index, which includes XRP. Many analysts believe this move opens the door even wider for an XRP ETF in the States.
As per Polymarket's data, there's an 89% chance for such a product to be approved in the U.S. this year. While SOL's odds are also high, some experts argue that Ripple's continuous expansion of its DeFi ecosystem, including the recent introduction of USDC on XRPL, could further solidify its position.
Moreover, some have pointed out that XRP is holding better because capital is chasing regulatory clarity and event-driven hype, while SOL's rebound potential is hampered by recent drawdowns and meme rotation fatigue.
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XRP Price as of Mid-June '25
As of mid-June '25, XRP is trading around $2.20–$2.30. Analysts see $2.20 as a critical support, with loss of which the next support might be $1.50. However, holding above $2.20 could set the stage for further upside.
Key:
- Price and Market Performance
- Regulatory Clarity
- Spot Ripple ETF Speculation
Future Price Impact:
- Short-Term Outlook
- Medium-Term (2025) Predictions
- Long-Term Potential
- Key Risks
Summary:
- Immediate outlook hinges on technical breakouts above $2.50, with targets at $3.00–$3.40 and longer-term projections ranging from $5.50 to $27 or more, depending on regulatory and market developments.
- Failure to maintain support could lead to retracements, underscoring the importance of ongoing regulatory clarity and market sentiment.
- The shift in capital flow, as indicated by the 30D Realized Cap changes from Glassnode, has seen XRP regaining the lead over SOL, a trend that could signal a significant change in the narrative and price movements of XRP.
- The renewed hope for spot Ripple ETF approvals, supported by the SEC's recent green light for a Nasdaq crypto US settlement price index, and the continuous expansion of Ripple's DeFi ecosystem, including the recent introduction of USDC on XRPL, are often cited as reasons behind XRP's renewed position in the market.
- Analysts and market experts have suggested that the surge in capital rotation into XRP indicates "stronger short-term conviction," with some pointing out that XRP is holding better because capital is chasing regulatory clarity and event-driven hype, while SOL's rebound potential is hampered by recent drawdowns and meme rotation fatigue.
