XRP at $3: Time to Buy or Brace for Impact?

XRP hovers at the $3 mark—a psychological threshold that's got the crypto world buzzing. Is this the calm before another explosive rally or the peak before a painful correction?

The Ripple Effect

Institutional adoption continues driving real-world utility—banks aren't just dipping toes anymore, they're diving headfirst into blockchain settlements. Regulatory clarity gave XRP wings while other cryptos still wrestle with paperwork.

Technical Tug-of-War

Resistance at $3.20 held firm through three testing sessions—each rejection sharper than the last. Support? Look to $2.80 where buy orders cluster like Wall Street bankers at a free bar.

Market Momentum vs. Macro Headwinds

Traditional finance finally gets it—digital assets aren't going anywhere. But rising interest rates could squeeze speculative plays harder than a hedge fund's risk management committee.

Timing beats guessing every time. Whether you're accumulating or waiting for clearer signals, remember: in crypto, even 'safe' bets can drop faster than a banker's moral standards.

Buy, buy, buy

Perhaps the most compelling reason to buy XRP while it's still around $3 is the likelihood that the U.S. Securities and Exchange Commission (SEC) will approve spot exchange-traded funds (ETFs) for the digital token. Trading on the online prediction market Polymarket reflects a 92% chance that at least one XRP ETF will be approved by the SEC this year.

If the agency indeed approves one or more XRP spot ETFs, the new funds WOULD buy XRP, potentially creating upward pressure on its price. And if a strong influx of money poured into the ETFs as a result of high investor interest, the positive effect on XRP would be even greater.

Investors shouldn't have to wait long for decisions by the SEC. Although the agency has delayed a few deadlines for XRP spot ETFs, it should announce at least one verdict within the next month or so.

Image source: Getty Images.

The TRUMP administration could deliver great news for XRP early next year. In August, President Trump directed Secretary of Labor Lori Chavez-DeRemer to look into opening up 401(k) accounts to alternative assets, including cryptocurrencies. Should she recommend allowing ownership of these assets in 401(k) plans, XRP (along with other major tokens) would almost certainly enjoy nice gains.

We could see a catalyst even sooner. The Federal Open Market Committee (FOMC) of the Federal Reserve is scheduled to meet on Sept. 16 and 17. Many expect the FOMC to announce that it is lowering the federal funds rate following this meeting. A larger-than-expected rate cut could contribute to a "risk-off" mindset for investors that makes cryptocurrencies such as XRP more attractive.

Not so fast

Should investors rush to buy XRP with all of those factors in mind? Not so fast. There are a few other things to consider.

Much of the anticipated good news from the SEC and Department of Labor could already be baked into XRP's price. The digital token has already delivered a strong return of more than 40% so far in 2025. Also, maybe neither the SEC nor the DOL will deliver good news after all. I don't think that will be the case, but it's not totally off the table.

Don't bet the farm that SEC approvals of XRP spot ETFs will cause the cryptocurrency to soar, either. The track record for spot ETFs providing huge catalysts for(BTC 0.71%) and(ETH -0.87%) is spotty (no pun intended) at best.

As for the potential Fed rate cut, I suspect it's already largely priced in as well. I could even see a scenario where a modest rate cut of 0.25% disappoints investors. With inflation rising again last month, such a cautious MOVE could be exactly what the FOMC decides to do.

The best answer about whether or not to buy XRP

Should you buy XRP with its price hovering around $3? I think the best answer is that it depends on your risk tolerance.

Investors who are especially cautious by nature probably shouldn't entertain the thought of buying XRP. All cryptocurrencies are highly volatile and are, therefore, not suited for every investor.

On the other hand, I view XRP as a good pick for aggressive investors who don't mind taking on higher risk. While some of the good news that is potentially on the way is almost certainly priced into XRP's price, not all of it is. I predict that this digital token will be higher 12 months from now than it is today.