"7 months of losses out of 8, yet a rebound?"...XRP before summer, what are the 3 major catalysts to break the slump?

▲ XRP, USD

Three reasons have been presented for XRP's potential rebound before summer. Analysis suggests that XRP, which has been suppressed by bearish trends, has re-entered the market's spotlight due to the convergence of regulatory clarity, ETF fund inflows, and integration with Japan's Rakuten payment system.

According to the cryptocurrency specialized media The Crypto Basic on May 29 (local time), the US investment advisory firm The Motley Fool presented three factors that could lead to a price rebound for XRP before summer. XRP fell by more than 3% in May, and there's a high possibility it will record monthly losses for the seventh time in the past eight months.

Lyle Daly, a financial writer at The Motley Fool, explained that XRP has largely traded sideways in recent weeks, and its bearish trend is clear compared to its prominent performance in the market last year when it surpassed $3. He noted that while cryptocurrency price prediction is difficult, several factors that could influence the market before summer might support XRP's recovery.

The first factor is regulatory progress. Daly pointed out that the long-standing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) concluded in August last year, and a US cryptocurrency market structure bill could officially formalize XRP's status as a digital commodity at the federal law level. The Senate Banking Committee passed the bill on May 14, and it is awaiting a full Senate vote in June.

The second factor is XRP ETF fund inflows. On May 11, the XRP spot ETF saw an inflow of $25.8 million, marking the largest single-day inflow since January 5. On the same day, approximately $17 million flowed out of the Ethereum (ETH) ETF. As of May 16, the total assets of XRP ETFs were approximately $1.3 billion, and JP Morgan projected that the fund could attract $4 billion to $8 billion in its first year. The Crypto Basic reported that subsequently, the XRP ETF did not record a single day of net outflow in May, and its monthly net inflow increased to $120 million, with cumulative net inflows reaching $1.41 billion.

The third factor is Rakuten integration. Rakuten Wallet, operated by Japan's major e-commerce company Rakuten, added XRP to its Rakuten Pay app last month. As a result, 44 million users can now use XRP as a payment method at over 5 million affiliated stores in Japan. Users can also purchase XRP with Rakuten Points, which have been issued to the tune of over 3 trillion points, worth approximately $23 billion. Daly commented that the structure allowing conversion of reward points to XRP could lower the barrier to entry for new users who are reluctant to invest cash.

The Motley Fool believes that regulatory improvements, increased ETF interest, and growing real-world payment usage could support XRP's price. However, The Crypto Basic noted that positive factors do not guarantee a price increase. While XRP is under pressure amidst a broader market downturn, it is re-emerging as an asset with three converging pillars—regulation, institutional demand, and real-world usage—ahead of summer.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*