XRP is once again making headlines, this time for overtaking Tether (USDT) to reclaim its position as the third-largest cryptocurrency by market capitalization. A 10% surge in price propelled XRP to $2.60, boosting its total market value to an impressive $152 billion—enough to edge past USDT, which currently holds a $150 billion market cap.
This development has caught the attention of traders, investors, and analysts across the globe, especially as XRP inches closer to the critical $2.69 resistance level. A breakout above that zone could pave the way for a potential rally toward its 2018 high of $3.40.
Momentum Builds as XRP Reclaims Top 3 Spot
According to CoinMarketCap, XRP’s recent climb reflects growing investor confidence, renewed market interest, and an increase in real-world adoption. While USDT remains a stablecoin with a fixed price, XRP’s price volatility allows it to respond dynamically to market catalysts—something that has helped it leapfrog into the #3 spot.
Data from Santiment shows that XRP has surged back to price levels not seen since early March, driven partly by macroeconomic conditions and a spike in crypto investor sentiment. Traders are now laser-focused on the $2.69 mark, which represents the 0.236 Fibonacci retracement from its all-time high of $3.84. Breaking through this barrier could set off a strong rally that pushes XRP closer to the symbolic $3 mark.
What’s Fueling the XRP Rally?
Several factors appear to be behind XRP’s renewed momentum. First and foremost, regulatory clarity is starting to emerge. A proposed bill in Missouri—House Bill 594—would allow for income tax deductions on capital gains from crypto, including XRP. While the bill is still in progress, its implications could be massive for retail investors and long-term holders.
Santiment also highlighted a notable increase in XRP wallet holders—an 11% rise since the beginning of 2025. This surge brings the number of unique holders to a 12-year high, signaling rising participation from everyday users.
In addition, XRP’s adoption in the real world is expanding. One of the latest moves includes its integration as a payment option on Travala.com, a global travel booking platform. This move supports XRP’s utility beyond just trading and investing, offering a practical use case that could fuel long-term demand.
Despite the broader market’s relatively low momentum, XRP’s rise suggests more than just short-term speculation—it indicates growing trust in the asset’s long-term potential.
Legal Progress: Ripple and the SEC Near Settlement
Another major catalyst for XRP is the evolving legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The two parties have filed a joint motion proposing a $50 million settlement. If approved, this deal would not only conclude a prolonged legal saga but also allow Ripple to access $125 million currently frozen in escrow.
The proposed resolution keeps intact the earlier court ruling that XRP’s secondary sales are not securities—a decision that could significantly reduce regulatory uncertainty moving forward. For investors, this is a welcome signal of stability and potential.
Derivatives Volume Skyrockets
The market’s reaction has been swift. According to Coinglass, derivatives trading volume for XRP spiked by an astonishing 172%, reaching $18.95 billion. Open interest also rose by over 15%, indicating that traders are betting big on XRP’s next move.
Technical analysts are also weighing in. CasiTrades reported that XRP is hovering just below the $2.69 resistance, with bulls maintaining strong support at lower levels. “We’re seeing steady price action above $2.64, with momentum building toward that crucial resistance,” the firm noted.
Another analyst, Dark Defender, pointed out that XRP has hit previously forecasted levels, suggesting this rally was not entirely unexpected. “We had projected a move from $2.45 to $2.58, followed by a wave that targets the same region. It’s unfolding as anticipated,” they shared.
Bottom Line: With strong technical signals, surging trading activity, and growing clarity on the legal front, XRP is staging a serious comeback. If momentum continues, the next stop might very well be the long-awaited $3 mark.
