XRP price climbed 4.15% to $3.02 today (Tuesday), September 9, 2025, marking its third consecutive session of gains and pushing the cryptocurrency back above the psychologically important $3.00 level. The surge comes as Federal Reserve (Fed) rate cut expectations hit 99% probability and Ripple announced an expanded custody partnership with Spanish banking giant BBVA.

In this article, I address the question of why the XRP price is surging and provide a technical analysis of the XRP/USDT chart, which suggests that current XRP price predictions are pointing to a potential increase of more than 50 percent.

XRP Price Today Retakes $3 Mark

During Tuesday’s session, XRP extended its upward correction and broke through the psychological level of $3. XRP's 4.15% daily gain significantly outpaced other major cryptocurrencies, with only Cardano posting stronger performance at 5.4%. The cryptocurrency has recovered 7.5% from Sunday's lows, adding over 21 cents to its value during the three-day rally.

Current market capitalization stands at approximately $178 billion, with 24-hour trading volume reaching $6.78 billion across major exchanges. The token maintains its position as the fourth-largest cryptocurrency by market cap, with 59.6 billion XRP in circulation from a maximum supply of 100 billion tokens.

Why XRP Price Is Going Up?

Federal Reserve Rate Cut Expectations Fuel Crypto Rally

The primary catalyst behind XRP's surge stems from overwhelming market expectations that the Federal Reserve will cut interest rates at its September 16-17 meeting. Fed futures now indicate a 99% probability of at least a 25-basis point rate cut, with some analysts predicting a more aggressive 50-basis point reduction following weak August employment data.

This monetary policy shift benefits cryptocurrencies like XRP as lower interest rates typically weaken the U.S. dollar and drive investors toward riskier assets. The prospect of cheaper money has sparked institutional interest across the crypto sector, with XRP outperforming major competitors including Bitcoin, Ethereum, and Dogecoin during Tuesday's trading session.

Ripple Extends BBVA Partnership to Spain

Adding to the bullish momentum, Ripple announced it will provide digital asset custody technology to BBVA for Spanish retail clients, extending their existing partnerships in Switzerland and Turkey. The expanded collaboration allows BBVA to offer end-to-end custody services for Bitcoin and Ethereum trading under the European Union's Markets in Crypto Assets (MiCA) regulation framework.

"Now that MiCA is established, the region's banks are emboldened to launch the digital asset offerings that their customers are asking for," said Cassie Craddock, Ripple's managing director for Europe.

This institutional adoption represents a significant validation of Ripple 's technology infrastructure and could signal broader banking sector acceptance of cryptocurrency services.

XRP Technical Analysis Shows 21% Upside Potential

From my technical analysis perspective, XRP has successfully reclaimed the 50-day exponential moving average (50 EMA) and broken above the $2.96-$3.00 resistance zone, which was reinforced by the 38.2% Fibonacci retracement level measured from June lows to July highs near $3.65. This breakthrough opens the path for testing local August highs around $3.30 and potentially the year's peak levels starting from $3.60.

Trading volume spiked to 159.63 million, nearly three times daily averages, confirming institutional participation in the breakout. The RSI remains in neutral-to-bullish territory in the mid-50s, while the MACD histogram is converging toward a bullish crossover, indicating accumulation patterns.

Current upside potential exceeds 21% to the $3.30 level.

XRP Price Prediction And 55% Jump After Flag Formation

Moreover, the breakout above the July downtrend line potentially triggers a measured move from the three-month flag formation that could target $4.70 - representing additional gains of over 55%.

The flag pattern had been forming since the June lows, and within the current triangle, XRP had less and less room to move. Ultimately, it broke to the upside, which in my view opens the way for bulls to drive a significant rally from the local lows we are now observing.

Market analysts are also increasingly optimistic about XRP's trajectory. Paul Howard from Wincent noted that "XRP is now just 18% off its all time high. The team has built an impressive crypto cohort the last 9 months with acquisitions, corporate adoption and regulatory movements that add credibility to the token."

Howard emphasized that while the short-term outlook shows range-bound trading, "XRP likely to outperform and break the $3.00 technical line given its volatility over BTC." The analyst highlighted XRP's superior performance relative to Bitcoin's more constrained trading range.

Others also read: XRP Price Could Reach $8 in 2025, According to Latest XRP/USDT Technical Prediction

Broader Crypto Market Dynamics Support XRP Rally

The cryptocurrency market is experiencing significant institutional momentum that extends beyond XRP. Bitcoin ETFs recorded $246 million in net inflows during early September 2025, driven by BlackRock's iShares Bitcoin Trust absorbing $434.3 million and Fidelity's FBTC adding $25.1 million.

Bitcoin's illiquid supply has climbed to a record 14.3 million BTC, with Ryan Lee, Chief Analyst at Bitget, noting that "more than 70 percent of coins now in wallets with little spending history, confidence in Bitcoin's long-term value remains evident." This supply tightening "not only reinforces the asset's role as a store of value but also heightens the potential for sharp moves as demand persists".

Lee expects Bitcoin to stabilize and regain upward momentum, with a target range of $105,000 to $118,000 supported by sustained institutional inflows and bullish technical signals. This broader crypto market strength provides a supportive backdrop for XRP's rally.

Whale Accumulation Continues Despite Exchange Inflows

Despite increased exchange reserves reaching 12-month peaks, sophisticated investors continue accumulating XRP. Whale wallets reportedly accumulated 10 million XRP in just 15 minutes during Tuesday's breakout, while broader whale holdings increased by 340 million tokens over recent weeks.

This divergence between short-term selling pressure from exchange inflows and long-term accumulation by large holders suggests different time horizons among market participants. The whale buying activity totaling $700 million in recent transfers has sparked speculation about institutional positioning ahead of potential XRP ETF approvals in October.

Outlook and Key Levels to Watch

Looking ahead, traders are monitoring several critical factors that could influence XRP's trajectory. The $2.99-$3.00 resistance zone that was repeatedly rejected in recent sessions has now become potential support, while the next major resistance lies at $3.30-$3.50.

Six XRP ETF applications currently under SEC review for October decisions represent a structural catalyst that could transform institutional access and demand dynamics. Combined with the Federal Reserve's anticipated rate cut and continued banking partnerships, these fundamentals support the technical breakout scenario.

However, risks remain if the cryptocurrency fails to maintain momentum above $3.00, with key support levels at $2.88-$2.89 where buying interest has consistently emerged during recent corrections.

XRP Price Analysis FAQ

Why is XRP surging today?

XRP is surging due to 99% probability Federal Reserve rate cut expectations and Ripple's expanded digital asset custody partnership with BBVA in Spain. The combination of dovish monetary policy and institutional banking adoption is driving demand across cryptocurrency markets.

How high can XRP go in 2025?

Technical analysis suggests XRP could reach $4.70 if it completes the three-month flag formation breakout, representing 55% upside potential. Conservative predictions target $3.30-$3.60 resistance levels, while bullish forecasts from analysts like Standard Chartered project $5.50-$15.00 by year-end depending on ETF approvals and institutional adoption.

What is driving XRP price predictions?

Key drivers include institutional partnerships with banks like BBVA, potential XRP ETF approvals in October 2025, Federal Reserve rate cuts, and whale accumulation patterns. Technical breakouts above $3.00 combined with regulatory clarity are supporting higher price targets.

What makes XRP different from other cryptocurrencies?

XRP's primary advantage lies in cross-border payment utility and institutional banking adoption. With 3-5 second settlement times and minimal transaction fees, XRP serves as a bridge currency for financial institutions. Recent partnerships with major banks and potential Amazon and Uber adoption distinguish it from speculative altcoins.