XRP price has sunk into a bear market in the past few weeks. It has plunged by 35% from its highest point this year, mirroring the performance of other tokens. This article highlights the top reasons why the Ripple price may go parabolic in the coming weeks.
XRP Price May Surge if the SEC Approves Ripple ETF
The first reason the XRP price may spike in the coming weeks or months is that institutional demand is expected to increase soon.
This demand will soar after the US government shutdown ends, leading to the approval of most XRP ETFs. These funds will likely mirror Bitcoin and Ethereum funds, which have added over $60 billion and $12 billion since their approvals.
Analysts anticipate billions of dollars in XRP ETF inflows after their approvals. For example, JPMorgan analysts see the funds attracting over $8 billion in assets this year.
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Ripple Price to Rebound as RLUSD Growth Continues
The other notable catalyst for the XRP price is the ongoing Ripple USD (RLUSD) growth. This stablecoin has now accumulated over $873 million in assets, and the figure may hit the $1 billion milestone soon.
The growth will be fueled by organic momentum and the recent acquisitions. Ripple Labs bought GTreaury last week and Rail and Hidden Road a few weeks ago. These companies will likely integrate RLUSD, which may bring billions of dollars to the network.
Ripple Labs Plans to Raise Funds to Buy XRP
Meanwhile, Bloomberg reported that Ripple Labs plans to raise $1 billion from investors. It will use these funds to accumulate XRP tokens for its treasury.
This is notable since Ripple Labs controls the escrow account that holds billions of XRP tokens. Also, more companies have announced XRP treasuries in the past few months. They include firms like VivoPower and SBI Holdings.
XRP Ledger Growth in RWA
The other reason why the XRP price will bounce back is its role in the real-world asset (RWA) tokenization industry. Its total assets in the RWA sector have jumped by 3.45% in the last 30 days to over $362 million. The top assets in the ecosystem are VERT Capital and OpenEden Digital.
The XRP Ledger network will likely continue growing as more companies embrace its technology.
Macro Factors to Boost XRP and the Crypto Market
Meanwhile, macro factors will help to boost the XRP price in the coming months. For example, the coin will benefit from the potential deal between the US and China ahead of Donald Trump’s meeting with Xi Jinping.
There is a chance that the Federal Reserve will cut interest rates again in the coming week. It will justify this cut to the deteriorating labor market and the ongoing labor market. Speculative assets like XRP tend to perform well when the Fed cuts interest rates.
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