Can XRP Hit $6.5? ETF Hopes and Fed Cuts Boost Bulls

XRP (XRP) remains the indisputable leader in the top 5 in terms of year-to-date (YTD) performance with gains of nearly 46% in 2025.

Although the token has struggled to stay above $3 lately, buying pressure has been strong every time XRP dips below this key threshold.

After a solid rally that took it from $0.5 to $3.4 in just months, XRP has been swept into a long period of consolidation as most other cryptos played catch-up.

With Bitcoin (BTC), Ethereum (ETH), and BNB Coin (BNB) already making new all-time highs, it seems to be just a matter of time for XRP to follow through by breaking its January 2018 barrier of $3.84.

New ETFs and Corporate Treasuries Could Boost XRP

Trading volumes in the futures market have subsided lately after nearing their 2025 record at $40 billion in mid-July. Back then, the price rose to its highest level since the November-January rally at $3.65.

XRP Futures Trading Volumes – Source: CoinGlass

Several companies have been creating treasury funds focused on specific altcoins like Sui (SUI), Solana (SOL), Cronos (CRO), and Chainlink (LINK). It seems to be just a matter of time for a similar vehicle to be launched for XRP.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) could soon approve the first spot XRP exchange-traded fund (ETF) to allow both retail and institutional investors to get exposure to this digital asset through the regulated markets.

Recently, ProShares launched the first XRP ETF to hit the U.S. market – the Ultra XRP ETF (UXRP). However, this fund provides exposure to the asset via derivatives and does not hold the token directly. The market considered this as a preliminary step and a positive sign that the SEC will soon give a spot product the green light to be listed.

XRP Could Break Out to $6.5 If This Key Support Holds

The daily chart shows a significant period during which XRP has been consolidating – at least 7 months at the time of writing. During that period, the lowest that the token has gone was $1.6 one time.

Other than that, it has been trading relatively range-bound between $1.9 and $3.4.

XRP/USD Daily Chart (Coinbase) – Source: TradingView

A descending triangle has been forming as a result of the latest price action. This kind of price compression could anticipate a strong breakout as it indicates accumulation. The key support to watch for XRP at this point would be $2.7.

If the price stays above that level, the odds would favor a move above $3.4 soon, followed by a first spike to $4 to break above the token’s long-dated all-time high.

However, the full potential of XRP, based on the size of the consolidation rectangle, could be around 100%, meaning that it could rise to $6.5 if that breakout materializes and positive momentum accelerates as a result.

Several tailwinds favor this outcome, the first being last week’s speech by the head of the Federal Reserve, Jerome Powell, where it was confirmed that the central bank is ready to make its first interest rate cut of the year.

Now that Trump’s aggressive trade policies are no longer considered a big threat to the economy, at least in the short term, Powell has reassured the market that the Fed will stick to its two planned rate cuts for the year if the jobs market and the economy keep performing well.

This favors a bullish outlook for cryptocurrencies and could be the necessary catalyst that kicks off altcoin season during this bullish cycle.