On May 22, 2025, the 4-hour chart for XRP/US Dollar on Bitstamp shows a falling wedge pattern forming between May 13 and May 21.
A falling wedge is a bullish pattern formed by downward-sloping, converging trendlines. It often signals weakening bearish pressure and potential reversal to the upside.
XRP broke out of the wedge today, climbing 3% from the breakout point. The price rose from around $2.34 to $2.41787, moving above the 50-period Exponential Moving Average (EMA), now at $2.38740.
If the breakout holds, the target sits near $2.91720, a 20% increase from the current level. This target aligns with the height of the wedge added to the breakout level, a common projection method in chart analysis.
Meanwhile, the Relative Strength Index (RSI) on the same timeframe has moved to 56.70, suggesting mild bullish momentum. RSI above 50 supports the breakout and shows increasing buyer interest.
Volume during the breakout has reached 1.54 million, which supports the move. Higher volume often confirms breakout strength.
The setup and current conditions suggest that traders are reacting to the wedge breakout rather than waiting for broader market signals. XRP is now testing its short-term resistance zone between $2.45 and $2.50. A strong move above this level may unlock the projected path toward $2.91.
XRP Futures Volume on CME Hits $25.6M in 48 Hours
Meanwhile, XRP futures recorded $25.6 million in notional volume on CME Group during their first two days of trading. CME launched the contracts on May 19, offering both standard (50,000 XRP) and micro (2,500 XRP) contracts.
On the first day, traders exchanged 120 standard and 206 micro contracts. This activity totaled around 6.5 million XRP, based on CME data. The following day, another 59 standard and 485 micro contracts were traded, adding 4.1 million XRP to the tally.
At a spot price of $2.39, the total equals $25.6 million in notional volume. These numbers place XRP ahead of Solana’s CME futures, which opened with $12.3 million in March 2025.
XRP CME Futures Show No Price Gap from Spot Market
The XRP contracts on CME are cash-settled and reference the CME CF XRP-Dollar Rate, updated daily at 11:00 a.m. Eastern Time. This design ensures the futures price stays aligned with the spot market.
As of the first 48 hours, there was no significant premium or discount between XRP futures and the spot price of $2.39. This pattern suggests that traders are not betting on sudden price shifts.
Participants may be using these contracts to hedge existing XRP exposure, rather than speculating. This can indicate a cautious or balanced market outlook, without pointing toward either bullish or bearish sentiment.
The contracts offer a regulated way to gain exposure to XRP, which appeals to market players needing compliance assurance. CME’s model supports this by using well-established reference pricing.
XRP Outpaces Solana in CME Futures Debut
Compared to other altcoins, XRP made a stronger entrance. Solana’s futures reached $12.3 million in notional volume on day one. XRP’s two-day figure more than doubled that.
Bitcoin (BTC) and Ethereum (ETH) launched futures on CME in 2017 and 2021, respectively. Their initial volumes were smaller, though both have since become regular choices for institutional investors.
The XRP listing reflects growing institutional interest in altcoin derivatives. XRP joins BTC and ETH as the only cryptocurrencies with regulated futures trading on CME.
This move also follows recent regulatory clarity around Ripple, XRP’s issuer. That clarity may have helped boost institutional confidence in trading XRP via regulated platforms like CME.
Ripple’s Shift Toward USDC
Ripple has offered up to $11 billion to acquire Circle, the issuer of USDC, one of the largest stablecoins by market cap. The move could shift Ripple’s focus from XRP to stablecoins, while reshaping the power balance in the crypto sector.
Ripple has positioned itself for years as a cross-border payment solution using XRP. But now, stablecoins like USDC are gaining more ground in traditional finance. These coins offer price stability and strong adoption, making them suitable for payment systems that once highlighted XRP’s use case.
Ripple’s push to acquire Circle signals a shift. By acquiring USDC, Ripple could bypass XRP’s struggles and rely on a widely accepted stablecoin. The proposed deal follows the launch of Ripple’s own stablecoin, RLUSD, which currently has a $310 million market cap. In comparison, USDC’s market cap stands at $61 billion, giving it far more influence across both crypto and traditional finance (TradFi).
An X user, R89Capital, commented,
“They are trying to buy Circle because stablecoins make the use case XRP was supposed to fulfil utterly useless.”
They also added that Ripple has already “dumped billions of dollars worth of XRP on retail,” referring to the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC).
Critics See XRP Getting Sidelined
The possibility that Ripple might own USDC has triggered concern in the community. Many fear that XRP could lose its role in Ripple’s long-term strategy. Ripple could focus more on integrating USDC across its services, reducing the need to promote or expand XRP use.
Users also highlighted that USDC already connects with major financial institutions. Through the acquisition, Ripple could benefit from Circle’s partnerships and shift attention to a token that already dominates regulated digital payments.
Another X user, 0xShual, warned that this deal might “trigger mass panic” in the crypto market. They fear that if Ripple controls USDC, it could centralize stablecoin operations and weaken trust in decentralized finance (DeFi).
Meanwhile, user GwartyGwart compared the acquisition to “Hooli buying Pied Piper,” referencing the Silicon Valley TV show to describe the risk of corporate overreach in a decentralized space.
Market Impact and Pushback
If Ripple succeeds, it could gain a powerful position against other stablecoin issuers like Tether (USDT). Yet, the deal faces multiple hurdles. Circle has already rejected earlier offers. And Coinbase, a stakeholder in Circle, may apply pressure to block the sale.
Despite the size of Ripple’s offer, the deal raises questions about centralization, market control, and the long-term future of XRP. The crypto community remains split—some see it as a strategic business move, while others view it as a threat to the sector’s trust and openness.
