Karla Barker 
A US-based investment advisory firm, The Motley Fool, has published a report outlining three key factors that could drive a price rally for XRP before summer. Financial writer Lyle Daly authored the piece, noting that XRP has been under pressure along with the broader crypto market, falling over 3% in May. At press time, XRP was trading around $1.32, down from about $1.40 when the report was written. This marks a sharp drop from its highs above $3 last year, but Daly suggests several developments might help the asset regain strength.
Regulatory clarity from the Clarity Act
Daly highlighted regulatory progress as a major catalyst. Uncertainty around crypto regulations has long weighed on XRP, especially due to Ripple’s legal battle with the SEC, which was settled last August. The Motley Fool report points to the Clarity Act, a bill aiming to create clearer rules for cryptocurrencies. While the SEC and CFTC already treat XRP as a digital commodity, the new law could make that status official. The Senate Banking Committee passed the Clarity Act on May 14, briefly pushing XRP’s price higher. A full Senate vote is expected in June. If passed, it could remove a major regulatory concern and encourage more institutional adoption.
XRP ETF inflows are growing
The report also notes rising demand for XRP ETFs. On May 11, spot XRP ETFs saw $25.8 million in inflows, the highest single-day figure since January. In contrast, Ethereum ETFs saw nearly $17 million in outflows the 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, data shows XRP ETFs have not recorded a single day of outflows in May, marking their longest streak this year. May alone has brought $120 million in net inflows, pushing cumulative totals to $1.41 billion. This could make May the best month of 2025 and the third strongest overall, behind November and December.
Rakuten integration expands real-world use
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 across over 5 million merchants in Japan. Users can also buy XRP using Rakuten Points, a rewards system that has issued over 3 trillion points worth about $23 billion. Daly noted this fits XRP’s purpose as a fast, low-cost payment option. Allowing users to 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. Crypto markets remain difficult to predict. Still, he believes regulatory progress, rising ETF demand, and real-world adoption could support XRP’s price, potentially leading to a strong move as summer approaches.