Strong investor interest, upcoming ETF approvals, and bullish technical patterns drive optimism for XRP’s price breakout.

As the crypto markets regain momentum, XRP is emerging as a strong contender for the next major breakout. With its price already rebounding over 55% from 2025 lows, XRP now eyes a 35% surge to reclaim its year-to-date high of $3.40. This bullish outlook is fueled by surging interest in Ripple-backed investment products and promising developments on both institutional and technical fronts.

ETF Inflows Signal Growing Institutional Demand

At the centre of XRP’s bullish momentum is the Teucrium 2x Long Daily XRP ETF (XXRP), which has been on a five-week streak of positive inflows. The fund has now amassed more than $99.1 million in assets under management, inching close to the significant $100 million milestone. Last week alone, it attracted $14 million in fresh capital — a clear indicator of accelerating interest from investors seeking leveraged exposure to XRP.

Despite its relatively high expense ratio of 1.89%, the ETF continues to outpace expectations, pointing to robust confidence in XRP’s near-term prospects. In comparison, ProShares’ Bitcoin ETF — one of the most popular in its class — charges a lower management fee of 0.95%, yet has seen slower recent growth.

This rising interest is not limited to Teucrium. Speculation is mounting that the U.S. Securities and Exchange Commission may soon greenlight spot XRP ETFs. Firms such as Grayscale, Franklin Templeton, CoinShares, 21Shares, and Canary have already submitted filings. On prediction markets like Polymarket, the odds of an approval have surged to 80%, adding further optimism.

Potential Inflows Could Outpace Ethereum ETFs

Analysts believe the approval of spot XRP ETFs could be a game-changer. A recent forecast by JPMorgan suggests these products could attract as much as $8 billion in inflows during their first year. That figure would exceed what Ethereum ETFs have achieved since their debut in September 2024.

Such inflows could significantly boost XRP’s liquidity and market presence, helping solidify its role as a core crypto asset alongside Bitcoin and Ethereum. With a market capitalisation of nearly $150 billion, XRP is already among the largest digital currencies, and further institutional support could elevate its status even more.

Ripple Labs Expands Beyond Payments

Beyond ETFs, Ripple Labs — the company behind XRP — has been expanding its ecosystem in key financial sectors. Its Ripple USD (RLUSD) stablecoin has quietly gained traction, now holding a market cap of over $300 million. Reports also indicate ongoing talks between Ripple and Circle, the issuer of USD Coin (USDC), hinting at possible collaboration or integration within the stablecoin space.

Additionally, Ripple recently acquired prime brokerage firm Hidden Road, marking its entry into institutional-grade crypto services. These moves align with Ripple’s broader ambition to become a dominant force in cross-border payments and digital finance infrastructure.

Bullish Technical Setup Points to $3.40 Target

Technical analysis supports the positive outlook. XRP has rebounded from its April low of $1.6218 and is now trading above its 50-day moving average, often seen as a key momentum indicator. The chart also shows an inverse head-and-shoulders pattern, a classic bullish reversal formation. The head is set at $1.6218, with both shoulders near the $2 mark — and the breakout now appears in motion.

The Average Directional Index (ADX), which gauges trend strength, has risen to 20, further confirming the growing bullish pressure. If momentum continues to build, XRP could hit its year-to-date high of $3.40 — a 35% climb from current levels.