As recently discussed in a CNF update, the U.S. Securities and Exchange Commission (SEC) decided to withdraw its lawsuit against Ripple Labs, which was originally filed in December 2020.
The case, which cost millions in legal battles, ended with Ripple Labs being fined $125 million for its violations, far below the SEC’s initial $2 billion demand.
With this legal clarity, discussions have intensified around XRP’s potential to reach new price milestones, particularly the $5 mark. As of March 20, XRP is trading at approximately $2.48, reflecting a 9.7% increase in the past week. This outpaces Bitcoin (BTC), which has seen a 2.95% rise over the same period.
However, to reach the projected $5, XRP would need to rise by approximately 101.61% from its current price. Technical analysis indicates that XRP must first break through key resistance levels, such as $3, to sustain its bullish momentum. Failure to do so could result in a bearish outlook, with potential pullbacks to lower support levels.
Despite this, market sentiment remains optimistic. As previously reported, crypto analyst Egrag Crypto recently predicted that XRP could surge to $10 in this market cycle, making a $5 target realistic and well within reach.
Market Factors Influencing XRP’s Price to $5
Several key factors could drive XRP’s price toward the $5 mark, one of them is the growing adoption of Ripple’s technology by financial institutions is a significant catalyst for XRP’s potential appreciation.
XRP is being increasingly utilized for liquidity and fast transactions in global remittance systems. Ripple already has partnerships with over 300 banks and financial institutions, including SBI Holdings in Japan, The Bank of Japan, American Express, and Vietcombank in Vietnam. These partnerships continue to strengthen RippleNet’s presence in cross-border payments, further increasing demand for XRP.
Additionally, a spot XRP ETF could be a game-changer for institutional investment in XRP. As previously highlighted by CNF, eighteen ETF filings have been submitted to the SEC by key financial firms, including Bitwise, Canary Capital, Grayscale, 21Shares, ProShares, Franklin Templeton, and WisdomTree. If approved, an XRP ETF would significantly enhance accessibility for institutional investors, leading to increased demand and potentially driving prices higher.
In a major development, the Chicago-based digital asset derivatives exchange Bitnomial has launched the first-ever XRP futures contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC). This provides both institutional and retail investors with a regulated way to gain exposure to XRP, further enhancing its market liquidity and depth.
Also, the recent advancement of a stablecoin bill by the Senate Banking Committee suggests that clearer stablecoin regulations are on the horizon. This is particularly significant for XRP, considering that Ripple launched its U.S. dollar-backed stablecoin (RLUSD) in December 2024. The stablecoin market currently accounts for over $230 billion in circulation, with the U.S. dollar dominating the sector. The approval of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) could provide further legitimacy to XRP’s role in digital finance.