The Motley Fool, a US-based investment advisory firm, has outlined three key reasons why XRP could see a price rally before summer.
In a report by financial writer Lyle Daly, the firm noted that XRP has remained under pressure, falling more than 3% in May. At press time, XRP traded at $1.32, down from around $1.40 when the report was written. This decline is part of a broader market downturn, but Daly believes several developments could help the asset rebound.
Regulatory Progress from the Clarity Act
Daly pointed to regulatory clarity as a major driver. XRP has long faced uncertainty due to its ties to Ripple and a legal battle with the SEC, which was settled last August. The Clarity Act aims to create clearer rules for cryptocurrencies. While the SEC and CFTC already treat XRP as a digital commodity, the bill could make this official under federal law. The Senate Banking Committee passed the act on May 14, briefly pushing XRP’s price higher. A full Senate vote is expected in June. According to Daly, this could ease investor concerns and encourage institutional adoption.
XRP ETF Growth Shows Rising Demand
Daly also highlighted growing interest in XRP ETFs. On May 11, spot XRP ETFs saw $25.8 million in inflows, the highest single-day figure since January 5. In contrast, Ethereum ETFs recorded nearly $17 million in outflows that same day. As of May 16, XRP ETFs held about $1.3 billion in total assets. JPMorgan Chase forecasts these funds could attract between $4 billion and $8 billion in their first year. Since the report, XRP ETFs have not recorded a single day of outflows in May, with only two days left in the month. This marks their longest streak this year. May alone has brought $120 million in net inflows, putting cumulative inflows at $1.41 billion. This could make May the best month of the year, behind only November and December 2025.
Rakuten Integration Expands Use Case
Another factor is Rakuten’s integration of XRP. Rakuten Wallet, part of Japan’s largest e-commerce company, added XRP to its Rakuten Pay app last month. This allows 44 million users to pay with XRP at over 5 million merchants. Users can also buy XRP using Rakuten Points, a rewards system with over 3 trillion points worth about $23 billion. Daly noted this fits XRP’s role as a fast, low-cost payment option. Letting users convert reward points into XRP could drive adoption, especially among those hesitant to invest cash.
Positive Signals, But No Guarantees
Daly concluded that while these developments are positive, they do not guarantee a price increase. The crypto market remains hard to predict. Still, improving regulation, rising ETF demand, and real-world use could support XRP’s price as summer approaches.
