The cryptocurrency market is experiencing one of its most significant rallies in recent times. Bitcoin (BTC) has climbed to a new all-time high, breaching the $118,000 level for the first time in its history. Other assets seem to be following BTC’s trajectory. Ripple’s XRP token may see a new peak following the recent bullish developments.

Can XRP Follow Bitcoin and Hit $3.5 and $4?

XRP is currently down by 23.2% from its all-time high of $3.40. The asset hit its peak in January 2018, more than seven years ago. The asset struggled to gain momentum over the last few years due to the SEC filing a lawsuit against the fintech company. The litigation was laid to rest earlier this year with both parties coming to a settlement.

Ripple’s popular cryptocurrency could be in the early stages of a massive bullish phase. The fintech company recently announced that it has chosen BNY Mellon as its stablecoin custodian. The move could lead to a number fo banks adopting Ripple’s infrastructure for cross-border transactions. Banks in Japan have displayed steller support for Ripple over the last few years. A similar pattern could emerge in the US after clear regulations are in place.

XRP also has several spot ETF applications awaiting approval at the SEC. There is a high chance that the financial watchdog will approve at least one ETF this year. A spot ETF will likely lead to a surge in institutional inflows. Institutional money has been critical in Bitcoin’s (BTC) rise to a new all-time high. We could see a similar trajectory for XRP if a spot ETF is approved.

Also Read: Here’s What We Actually Learned From XRP Price Predictions in 2025

Under favorable market conditions, XRP could easily rise to the $3.50 or $4 mark. The asset has to rally by 52.6% to hit the $4 mark. The popular crypto has already risen by a lot more than 52.6% over the last year.