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XRP is still one of the few major cryptocurrencies that offer a clear real-world application. Built as a bridge asset for Ripple's global payment network, XRP has been designed to support fast, low-cost cross-border transactions between financial institutions. The token, although it showed a recovery in 2025, its future valuation relies on whether its utilities can be transformed into continuous demand.
XRP price found support around the 50-day EMA at $2.06 last week and hovered around this zone.
XRP saw an over 5% increase on Tuesday, but fell for two consecutive days, wiping out the gains.
Currently, XRP is trading at $2.06, close to the 50-day exponential moving average (EMA). In case the 50-day EMA remains as support, XRP may extend toward the daily resistance level of $2.35.
The RSI on the daily chart is flattening near the neutral 50 level, suggesting traders are uncertain about the market direction, and the MACD lines are converging, further supporting an indecisive outlook.
Global cross-border payment transactions still show inefficiency, and banks regularly resort to fragmented systems like SWIFT. Ripple Payments is set to transform this payment network by offering instantaneous settlements at a cheaper cost.
XRP is the bridge currency that facilitates the transfer of value among different institutions across currencies without locked-up accounts.
Transaction costs on the XRP Ledger are minimal, often amounting to fractions of a cent per transfer, making the network attractive for high-volume use cases.
However, a critical limitation remains: banks do not need to use XRP to access Ripple’s core benefits. Ripple Payments supports fiat-to-fiat settlement, meaning widespread adoption of Ripple’s software does not automatically result in proportional XRP demand.
A major catalyst in 2025 was Ripple’s settlement with the Securities and Exchange Commission, which removed years of legal uncertainty around XRP’s status.
This development helped XRP rally to multi-year highs and enabled new institutional products, including spot ETFs, which have attracted over $1.37 billion in net inflows
Unlike mined assets, XRP was pre-issued, and a significant portion of the supply remains linked to Ripple-controlled escrow releases.
When banks use XRP for settlement, tokens are typically sold almost immediately after transactions are completed. This creates persistent sell-side pressure, limiting the impact of rising transaction volumes on price.
Additionally, Ripple’s launch of Ripple USD introduces internal competition. Stablecoins offer zero volatility and are better suited for payments.
While XRP is still required for network fees, this creates only marginal incremental demand.
Also Read: XRP vs Bitcoin: Rare Ichimoku Breakout Signals Potential XRP Rally
Based on adoption trends, supply dynamics, and historical drawdowns, a realistic five-year outlook can be framed in three scenarios:
Bear Case: $0.75-$1.20
Base Case (Most Likely): $3.00-$3.50
Bull Case: $5.00-$6.00
