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XRP continues to face challenges in the cryptocurrency market, remaining in a technical bear market after experiencing a 37% drop from its peak earlier this year. Despite these hurdles, XRP’s current price remains at the same level as it started the year, while Bitcoin has gained 15% in 2025.

Why XRP Could Surge by 50%

As of Sunday, XRP’s price was trading at $2.140, with trading volume and futures open interest showing signs of pressure. However, there are several reasons why XRP could potentially rise by 50% to retest its year-to-date high of $3.4 by June.

1. Potential Approval of XRP ETF

The Securities and Exchange Commission (SEC) is expected to decide on Franklin Templeton’s proposed XRP ETF by June 17. If approved, this could significantly bolster XRP’s price due to anticipated inflows from institutional investors. Analysts at JPMorgan estimate the fund could attract over $8 billion in its first year. While approval remains uncertain, Polymarket traders have placed the odds at 21% for approval by July 31 and 83% by the end of the year. Any positive decision could act as a catalyst for XRP’s price breakout.

2. Positive Funding Rates

Crypto traders are factoring in a potential breakout for XRP in the coming weeks. One key indicator supporting this view is the eight-hour funding rate, which has consistently stayed in the positive zone recently. Positive funding rates in perpetual futures signify that traders anticipate higher prices, reflecting bullish sentiment in the market.

3. Bitcoin’s Influence on the Market

Market dynamics suggest that a bullish breakout in Bitcoin could positively impact other cryptocurrencies, including XRP. Bitcoin is currently forming a handle section of the cup-and-handle pattern, a bullish technical indicator that could lead to a surge to $143,000. If Bitcoin breaks out, the ripple effect may drive XRP higher, aligning with historical trends where Bitcoin’s performance influences altcoin movements.

4. Strong Technical Indicators

XRP’s technical setup points to a promising outlook. The accumulation and distribution indicators suggest increased accumulation, aligning with the Wyckoff Theory’s accumulation phase. This phase is typically followed by a markup stage characterized by higher demand than supply.

Additionally, XRP’s price is trading slightly above the 200-day moving average and has formed a giant bullish pennant pattern. This pattern, consisting of a vertical line and a triangle, often leads to a strong bullish breakout.

Another notable formation is the inverse head-and-shoulders pattern on XRP’s chart. A breakout from this pattern could push XRP to retest the resistance level of $3.3842, marking an almost 50% increase from its current price.

Key Takeaways for Traders

For traders and investors interested in XRP, monitoring the following factors could provide insights into its potential price movement:

  • The SEC’s decision on the XRP ETF, which could attract institutional investment.
  • Funding rates in perpetual futures, indicating market sentiment.
  • Bitcoin’s price action and its influence on the broader crypto market.
  • Technical indicators like the 200-day moving average, bullish pennant pattern, and inverse head-and-shoulders formation.

While uncertainties remain, the confluence of these factors suggests that XRP could experience significant upward momentum in the coming months.

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