XRP Surges to $2.65: Can It Reach 2018’s Record High?
By Bob Mason | Published: May 13, 2025
XRP, the digital asset associated with Ripple Labs, has recently reached a significant milestone, soaring to $2.65 amidst a wave of positive sentiment and speculation regarding its legal battle with the U.S. Securities and Exchange Commission (SEC). This price surge raises the question: Can XRP challenge its all-time high of $3.55, set back in January 2018?
XRP’s Surge and Market Position
On May 12, XRP briefly overtook USDT (Tether) to become the third-largest cryptocurrency by market capitalization. This rise was significantly influenced by ongoing optimism surrounding potential resolutions in the SEC’s case against Ripple. Reports suggest that Ripple and the SEC are nearing a settlement that could potentially lift the current ban on XRP sales and reduce the hefty $125 million penalty that Ripple faces.
Market analytics firm Santiment attributed XRP’s impressive performance to several key factors:
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Legislative Support: Recently, Missouri became the first U.S. state to allow full income tax deductions on all capital gains, including those from cryptocurrencies like Bitcoin and XRP. This legislative change is expected to bolster investor confidence.
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Growing Holder Base: The number of XRP holders has increased by over 11% year-to-date, driven by positive sentiment regarding Ripple’s ongoing legal proceedings and increased adoption by payment platforms.
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Adoption by Merchants: Travel booking platform Travala.com has begun accepting XRP as a payment method, further enhancing its utility and appeal.
These developments have collectively contributed to a surge in investor interest in XRP, reflecting a broader trend toward legal and institutional acceptance of cryptocurrencies.
Ripple-SEC Case and ETF Implications
The anticipation surrounding a ruling by Judge Analisa Torres, addressing the SEC’s recent motions, is palpable among the crypto community. The SEC has filed to lift the injunction against XRP sales to institutional investors, which, if approved, could pave the way for XRP to become part of the growing market for spot exchange-traded funds (ETFs). A successful approval of an XRP-spot ETF has the potential to mirror the substantial institutional demand seen for Bitcoin-based ETFs, which have driven BTC prices to unprecedented heights.
In January 2025, Bitcoin (BTC) reached an all-time high of approximately $109,312, fueled by an influx of institutional investment. The performance of XRP in the coming weeks could be influenced significantly by how the SEC case unfolds and the potential establishment of an XRP-spot ETF market.
Key Price Movements and Technical Analysis
As of May 12, XRP saw a remarkable 7.53% increase from the previous day, closing at $2.5448. This growth outpaced the broader cryptocurrency market, which experienced a slight decline. XRP’s peak price of $2.6554 marked its highest level since early March.
Market observers believe that if XRP can maintain momentum above the $2.50 psychological barrier, it could test the critical $3.00 mark, potentially approaching its previous all-time high. However, technical support is seen at the $2.10 level, making this a pivotal point for investors watching the market closely.
Bitcoin Reaction: US-China Trade Developments
Alongside XRP’s rise, Bitcoin has also shown impressive performance, crossing the $105,000 threshold for the first time since early January. The boost came following positive news regarding U.S.-China trade relations, as tariffs between the two economic powers were temporarily reduced, easing recession fears.
While BTC endured slight profit-taking, a significant recovery and sustained interest from both retail and institutional traders are expected as the market reacts to ongoing geopolitical developments.
Conclusion
As cryptocurrency markets react to legal updates and macroeconomic conditions, both XRP and Bitcoin are under the spotlight. The outcome of the Ripple-SEC case could have profound implications not only for XRP’s price trajectory but for the wider acceptance of cryptocurrencies in regulatory frameworks.
Market participants will be closely monitoring developments in the Ripple case, as well as upcoming legal rulings and ETF updates. A positive resolution could not only revive XRP’s market standing but also shift the landscape of cryptocurrency investing as a whole.
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