Should You Buy XRP While It's Under $3? Analyzing Undervaluation and Institutional Adoption Potential

Should You Buy XRP While It's Under $3?

As of late 2025, XRP trades near $3.00, a price point that has sparked debate among investors. With regulatory clarity post-SEC settlement and surging institutional adoption, the token appears undervalued relative to its long-term potential. This analysis evaluates whether XRP's current price reflects its fundamentals and what catalysts could drive further appreciation.

Regulatory Clarity: A Catalyst for Institutional Confidence

According to an Analytics Insight report, the settlement affirmed that XRP is not a security when traded on public exchanges, providing much-needed regulatory clarity. This development has unlocked institutional participation, with major players like JPMorgan, SBI Holdings, and Goldman Sachs integrating XRP into their operations, as reported by The Coin Republic. For context, institutional adoption of XRP has outpaced that of other cryptocurrencies, with over 60 institutions adopting the token since the ruling, according to The Coin Republic.

Institutional Adoption: From Niche to Mainstream

XRP's utility in cross-border payments, facilitated by Ripple's On-Demand Liquidity (ODL) service, has driven real-world demand. Data from The Coin Republic reveals that ODL processed $1.3 trillion in transactions during Q2 2025 alone. Meanwhile, the Chicago Mercantile Exchange (CME) reported open interest in XRP futures contracts exceeding $1 billion-a milestone achieved faster than for any other cryptocurrency, a trend highlighted by Analytics Insight. These metrics underscore XRP's transition from speculative asset to a functional tool for global financial infrastructure.

Technical and Market Indicators: A Case for Optimism

From a technical perspective, XRP's price action suggests a potential breakout. A bullish pennant pattern, combined with strong on-chain buying pressure, indicates that a breach of the $3.10 resistance level could trigger a rally toward $5.00 or higher. Analysts at BlockNews note that XRP-based ETF approvals, expected as early as October 2025, could inject an additional $4.3 billion to $8.4 billion into the market. Such inflows would further validate XRP's role in institutional portfolios.

Historical data from resistance-level breakouts provides further context. Over the past three years, XRP has experienced 50 instances where its price closed above its 30-day high (a "resistance break"). In these cases, the token generated an average 22% cumulative excess return over the subsequent 30 days-significantly outperforming the 7.8% benchmark, per Analytics Insight. The win rate for these events remained above 50% for the first 21 days, peaking at 58% on day 5. This suggests that a well-timed breakout could offer a favorable risk-reward profile, particularly for investors willing to hold for ~20 trading days before locking in gains.

Risks and Realities

No investment is without risk. A failure to hold support at $2.84 could trigger short-term corrections, as highlighted by Analytics Insight. Additionally, profit-taking by holders with $10 billion in unrealized gains remains a headwind, The Coin Republic reports. However, these risks are mitigated by XRP's growing utility and the structural shift toward institutional adoption.

Conclusion: A Strategic Buy Opportunity

XRP's current price of under $3 represents a compelling entry point for investors willing to bet on its long-term potential. The combination of regulatory clarity, institutional integration, and real-world utility positions XRP to outperform in a maturing crypto market. While volatility is inevitable, the underlying fundamentals suggest that XRP is undervalued relative to its trajectory. For those with a multi-year horizon, the risks appear justified by the potential rewards.