As the crypto market enters a new growth phase, the battle for the second-largest cryptocurrency by market cap is heating up. Technical indicators and fundamental trends suggest that Ripple’s XRP may be on track to overtake Ethereum (ETH) in 2025, challenging the long-standing dominance of the world’s leading smart contract platform.
Diverging Price Patterns Between XRP and Ethereum
At the time of writing, Ethereum trades at $1,837, while XRP is valued at $2.20. Despite being lower in price, Ethereum holds a larger market cap of $220 billion, compared to XRP’s $150 billion. However, recent chart formations hint at a possible reversal in these rankings.
Bearish Signals for Ethereum
Ethereum’s price action is signaling trouble ahead. A double-top pattern has formed at the $4,086 level, with a neckline at $2,140 its lowest point since August 5 of last year. According to technical analysis, a breakdown below this neckline could lead to a 47% decline, pushing ETH toward $952. This would reduce Ethereum’s market cap to around $120 billion, assuming constant token supply.
Adding to this bearish outlook is the presence of a rising wedge pattern, another common indicator of a potential downside breakout. ETH has also failed to reclaim the psychological resistance at $2,000, signaling weakening momentum.
Bullish Chart Setups for XRP
In contrast, XRP is showing signs of strength on its chart. The token has formed both a bullish pennant and a falling wedge pattern two classic indicators of an impending breakout.
The bullish pennant is especially notable, comprising a strong vertical flagpole followed by a symmetrical triangle. This setup often leads to explosive upward moves when the trendlines converge. XRP is also holding above the 100-day moving average, adding further bullish confirmation.
If XRP breaks above its current range and retests its year-to-date high of $3.40, its market cap could rise to nearly $200 billion, closing the gap with Ethereum significantly.
Fundamental Catalysts Favoring XRP
Beyond technicals, XRP has several key fundamental drivers that could accelerate its ascent:
- Spot XRP ETF Approval Likely:
With the SEC signaling a softer regulatory stance under Chairman Paul Atkins, there’s rising optimism that a spot XRP ETF could be approved in 2025. Such a product would likely bring institutional inflows similar to those seen in spot Bitcoin ETFs. - Ripple USD (RLUSD) Growth:
Ripple’s native RLUSD stablecoin is gaining traction. With a market cap already exceeding $293 million, it’s positioning itself as a competitor in the booming stablecoin market adding utility and demand for the XRP network. - Wider Institutional Adoption:
Ripple’s global partnerships with banks and payment providers continue to position XRP as a viable settlement token, potentially attracting new institutional players looking for alternatives to Ethereum’s higher fees and slower transaction speeds.
A Realistic Flippening in Sight?
While Ethereum still holds the second-largest market cap, the combination of technical weakness, rising XRP demand, and multiple catalysts could see XRP challenge ETH’s dominance by late 2025. If Ethereum drops toward $1,000 as forecasted, and XRP retests $3.40 or climbs beyond a flippening could indeed happen, marking a historic shift in the crypto rankings.
Investors and analysts will be watching closely, as this potential shake-up could redefine the DeFi and institutional finance landscape in the months ahead.
