XRP has experienced a remarkable rise in the past year, increasing by 257.9%, while Bitcoin only saw a 20.8% increase, and Ethereum dropped by over 46.6%. This performance has caught the attention of cryptocurrency analysts, with some predicting that XRP could outperform Bitcoin (BTC) and Ethereum (ETH) in the coming years.

Why XRP Could Outperform Bitcoin and Ethereum

One prominent crypto analyst, known as Dark Defender, has shared several reasons why XRP may outperform its competitors. Here’s why the coin has potential:

1. Regulatory Clarity for XRP

Unlike Bitcoin and Ethereum, which have faced ongoing regulatory uncertainty, XRP benefits from greater regulatory clarity. A significant legal victory for Ripple, the company behind XRP, came earlier when Judge Analisa Torres ruled that XRP is not a security. This decision marked a crucial turning point, as Ripple has spent years battling the U.S. Securities and Exchange Commission (SEC). The positive resolution of this long-standing legal fight means XRP is in a more secure position compared to other cryptocurrencies, which are still navigating regulatory hurdles.

2. Inclusion in the US Digital Asset Stockpile

XRP’s potential inclusion in the U.S. Digital Asset stockpile is another factor that could fuel its growth. U.S. President Donald Trump previously signed an executive order to create a crypto stockpile, and some analysts believe XRP could be added to this reserve. Being part of the official digital asset stockpile would significantly raise XRP’s profile and demand.

3. XRP ETF Approval by the SEC

The possibility of an XRP Spot ETF (Exchange-Traded Fund) being approved by the U.S. SEC also adds to the bullish sentiment. According to betting platform Polymarket, there is an 84% probability that the SEC will approve an XRP Spot ETF in 2025. This approval could lead to significant institutional investment in XRP, pushing its price even higher.

4. Ripple’s Stablecoin 

Ripple’s plan to introduce new stablecoins could also increase demand for XRP. If Ripple successfully introduces a stablecoin offering, it could lead to more use cases for XRP in the financial ecosystem. A surge in demand for Ripple’s stablecoin could drive XRP’s price upwards as it facilitates transactions in the new stablecoin network.

What’s Next for XRP: Boom or Bust?

XRP’s market outlook is not all positive, however. Analyst Dark Defender suggests that XRP is forming a bullish rectangle pattern, a technical formation that often signals a potential bull run. Based on this pattern, Dark Defender predicts that XRP could rise as high as $11 once the market breaks through the resistance.

Javon Marks, another analyst, supports the bullish outlook, stating that both price action and the Relative Strength Index (RSI) show bullish signals for XRP. Marks forecasts that XRP could surge by over 570%, considering the market’s potential for growth. The current RSI value for XRP is 42.90, indicating that there is still room for growth before the coin becomes overbought.

Contrarian Views: Potential Price Drop?

Not all analysts agree with the optimistic outlook for XRP. Acclaimed trader Peter Brandt has cautioned that a head-and-shoulders pattern is forming in the XRP market, a technical indicator that typically signals an impending price drop. Brandt warns that if XRP’s price falls below the $1.90 mark, the market could plummet as low as $1.07, which would reverse the recent gains.

Conclusion: XRP’s Potential in 2025

The outlook for XRP in 2025 is a mixed bag. While many analysts, including Dark Defender and Javon Marks, believe that XRP has the potential to outperform Bitcoin and Ethereum, there are some bearish signals, such as the head-and-shoulders pattern identified by Peter Brandt. XRP’s growth will likely depend on the resolution of key factors such as regulatory clarity, the potential for an ETF, and Ripple’s upcoming projects.

As it stands, XRP’s strong performance over the last year has raised expectations for its future. While there is potential for substantial growth, especially if the bullish patterns materialize, traders should remain cautious, as the market is always subject to rapid changes.