While XRP has spent a considerable amount of time trading under $3, several factors suggest this phase may be short-lived. Currently trading around $2.87, XRP faces resistance at $3.09, but analysts are increasingly bullish on its potential. Here are three reasons why XRP's time below $3 could be limited:

1. Potential for ETF Inflows: The anticipation surrounding a potential XRP Exchange Traded Fund (ETF) is a major driver of optimism. Canary Capital CEO Steve McClur has raised his forecast for XRP ETF inflows, predicting as much as $10 billion in the first month. To put this in perspective, market analyst Dom noted that a mere $61 million inflow previously expanded XRP's market cap by $16.6 billion. Applying a more conservative multiplier, McClur's $10 billion projection could boost XRP's market cap by approximately $544 billion. This influx of institutional capital could create a supply squeeze, potentially multiplying its market cap and leading to substantial short-term price appreciation. Experts suggest XRP could target between $10 and $50 with such inflows.

2. Regulatory Clarity and Expanding Adoption: Ripple's partial victory in its lawsuit against the SEC has provided much-needed regulatory clarity, making it more attractive to institutional investors. This clarity, coupled with Ripple's ongoing expansion of its payment network and partnerships with global banking institutions, strengthens XRP's fundamentals. The UN Capital Development Fund highlighted XRP as an efficient, low-cost remittance tool for developing nations in 2024, showcasing its real-world utility. Further bolstering adoption, VivoPower, a Nasdaq-listed firm, recently raised $19 million to build out its digital asset treasury, focusing on accumulating XRP. Moreover, the world's largest derivatives exchange, CME Group, is preparing to roll out 24/7 crypto trading next year, including Bitcoin and Ethereum futures and options, with Solana and XRP options lined up for launch on October 13. This move is expected to increase exposure and trading volume for XRP, attracting traditional market players.

3. Positive Technical Indicators and Market Sentiment: Despite some bearish signals, technical analysis reveals bullish potential for XRP. XRP has shown resilience, bouncing off the $2.70–$2.80 support range. A breakout above the $3 resistance could trigger a run towards $4 or higher. The Relative Strength Index (RSI) is also pushing higher, signaling positive momentum. The market sentiment, while exhibiting "greed", suggests a bullish outlook, with analysts predicting a potential price increase to $3.09 or higher in the near term. While some analysts predict a slight decrease in the short term, most forecasts remain optimistic for the remainder of the year and into 2026, with some even suggesting XRP could comfortably trade above $5 by the end of 2025.

While challenges remain, including regulatory uncertainties and competition from other cryptocurrencies, the potential for ETF inflows, increasing adoption, and positive technical indicators suggest that XRP's time spent under $3 may indeed be short-lived. Investors should, however, remain vigilant and monitor market developments closely, considering both the bullish and bearish scenarios before making any investment decisions.