XRP Surges 5%: Is This the Bear Market’s Final Gasp?

XRP just ripped higher—a 5% rebound that's got traders asking if the bottom is finally in.

The Green Flash

After weeks of grinding lower, the move stands out. It's not just a blip. It's a statement. The kind of price action that makes sidelined money twitch and shorts sweat. Volume spiked on the move, suggesting this wasn't just algorithmic noise. Real bids hit the order book.

Reading the Tea Leaves

Is this the pivot? One swallow doesn't make a summer, and one green candle doesn't end a bear market. But it cracks the door open. Watch for follow-through. Does it hold? Does it attract more buyers, or get sold into like every other rally this quarter? The market has a nasty habit of offering hope just to snatch it away—a classic move from the finance playbook, right up there with hidden fees and 'forward-looking statements.'

The Verdict

Don't pop the champagne yet. Call it a potential inflection point, not a confirmed trend reversal. The bears are wounded, not dead. But for the first time in a while, the bulls have something to work with. That 5% isn't just a number. It's a battle cry.

Will XRP Rally To $2, Or Will It Fall Again?

XRP’s latest price rally follows the Bank of Japan’s recent interest rate hike. The central bank raised rates to their highest levels since 1995. The market rally is surprising, given that rate hikes often lead to funds moving away from risky assets, such as cryptocurrencies.

XRP’s rally could be due to increased ETF inflows. XRP ETFs saw approximately $30 million in inflows on Thursday, Dec. 18, 2025. ETF inflows have played a key role in the market cycle of 2025. Bitcoin (BTC) and ethereum (ETH) climbed to new peaks in 2025 due to high ETF inflows. A similar pattern could emerge for XRP as well.

Another reason for XRP’s rally could be that investors are buying the dip. The asset’s price fell to $1.77 on Dec. 17, the lowest price level since April of this year. The cheap rates may have become attractive to investors buying for the long term.

While the rally is welcome, it is unclear if XRP can reclaim the $2 mark or not. The market is still quite fragile, and fresh volatility could wreak havoc at any moment. Given that investor sentiment is still down, there is a high chance that we are looking at a dead cat bounce and are nowhere NEAR the end of the bear market.