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XRP is approaching a key breakout zone, mirroring the setup before its previous 70% rally.
Whale accumulation and growing stablecoin activity like RLUSD strengthen Ripple's network fundamentals.
Holding above $2.65 support is critical for XRP to sustain bullish momentum in the current cryptocurrency market.
XRP, the native cryptocurrency of the Ripple network, is currently showing signs of repeating a strong bullish rally similar to the 70% surge it witnessed earlier this year. XRP price is approaching a significant breakout point, and technical indicators, market sentiment, and ecosystem developments are aligning once again in favor of a possible upward move. The possibility of another rally depends on several conditions, including technical patterns, investor activity, and broader market trends.
One of the strongest reasons behind the previous 70% rally of XRP price was a technical formation known as a falling wedge. This pattern appears when a cryptocurrency’s price moves within two downward-sloping lines that eventually converge. It usually signals a reversal and a breakout to the upside. Right now, XRP’s price chart is again showing this same pattern. The price is moving near the top of the wedge, and traders are closely watching for a breakout above this resistance.
In the past, when XRP broke out of a similar falling wedge earlier this year, the price jumped from around $2 to more than $3.39. If XRP manages to push past the current resistance zone between $3.00 and $3.10, the price could rise sharply again. Analysts are estimating a potential move toward $3.75 to $4.00 in the short term, which would represent a gain of nearly 20%. In some optimistic forecasts, this breakout could even trigger a rally up to $4.47.
Another key signal supporting this setup is XRP’s position in relation to its moving averages. The cryptocurrency is currently holding above its 50-day moving average and has reclaimed the 20-day average, both of which indicate bullish strength. The Relative Strength Index, or RSI, which measures market momentum, has also cooled down from an overheated state and is now sitting around 50. This suggests the market is resetting and could build momentum again if buying pressure returns.
Also Read: XRP Price Prediction: Will it Reach $5.50 in 2025?
Large XRP holders have played a crucial role in shaping price trends. Recent data shows a major transfer of XRP worth nearly $60 million from a major exchange wallet to a private address. This kind of move typically indicates that big investors are taking their holdings off exchanges, suggesting they plan to hold them for a longer time rather than sell immediately.
At the same time, nearly 29 million XRP tokens have been moved out of exchanges, reducing the circulating supply and easing selling pressure. These signs point toward accumulation, where investors expect the price to rise in the near future.
However, it's important to note that in early July, over 640 million XRP tokens were reportedly sold by whales. That selling activity raised concerns about the sustainability of the earlier rally and led to some market hesitation. If current whale accumulation outweighs previous selling pressure, XRP may be in a better position to rise again. But if whales resume offloading large amounts of XRP, it could put pressure on support levels and trigger a decline.
For XRP to repeat its earlier rally, it must first break through a key resistance range between $3.00 and $3.10. This range has acted as a ceiling over the past few weeks, preventing the price from moving higher. If XRP breaks above this barrier with strong volume, it could pave the way for a fast move to $3.75 or higher.
On the downside, a strong support zone exists around $2.65. This level aligns with the midpoint of XRP’s previous rally and also matches historical price activity. If XRP fails to hold this support, the price could slide further, possibly retracing toward $2.34, which lies near the bottom of the current wedge pattern. Therefore, XRP’s short-term future depends on how well it can defend support and challenge resistance.
Beyond price charts and trading patterns, XRP's fundamentals are also improving. The Ripple network has seen significant activity in recent months. In July alone, more than 70 million transactions were recorded on the XRP Ledger. Over a million new user accounts have been created this year, showing growing interest and adoption of the platform.
Ripple is also expanding the use of XRP by enabling stablecoin issuance on its network. Stablecoins backed by different currencies, including a Brazilian Real-based token and the upcoming USD-backed RLUSD, are being launched on the XRP Ledger. These developments increase the utility of XRP by making it easier to transact across borders and use the platform for financial services.
These advancements support long-term confidence in XRP, as they show that the token is not only being traded for speculation but is also gaining use in real-world financial applications. Increased usage of the network could drive demand for XRP and help stabilize its price over time.
XRP’s potential breakout is not happening in isolation. The entire cryptocurrency market is showing signs of recovery. With expectations growing that the US Federal Reserve will cut interest rates soon, investors are moving back into riskier assets like cryptocurrencies. This shift in sentiment has already lifted prices of several altcoins, with XRP gaining along with others.
As macroeconomic conditions improve, investor confidence tends to rise. Lower interest rates usually weaken the dollar and make speculative assets more attractive. If this trend continues, it could add fuel to XRP’s rally and support a broader move in the crypto market.
Some analysts have provided an XRP price prediction that could rise to new highs if it successfully breaks past resistance and sustains momentum. Estimates for this cycle range from $4.00 to $4.47 in the medium term, and even higher in the long run if adoption continues and regulatory clarity improves.
In more bullish scenarios, long-term price predictions stretch toward $5 to $10, although such targets depend heavily on how global regulators treat XRP and how quickly the Ripple network grows. While those estimates are speculative, they reflect growing belief in XRP’s potential to establish itself as more than just a digital asset, particularly as a tool for cross-border payments and decentralized finance.
Also Read: XRP News Today: XRP Whale Buys 900K Tokens Worth $1.7M Before SEC Update
XRP is once again standing at a crossroads. The technical structure that led to a previous 70% rally has returned, and both price behavior and trading indicators support the possibility of another breakout. With increasing whale accumulation, strong network growth, and improving macroeconomic conditions, XRP appears well-positioned for upward movement.
However, risks remain. Resistance at $3.10 must be broken convincingly, and support around $2.65 must hold to avoid a major correction. While a repeat of the earlier 70% rally is not guaranteed, the current setup presents a promising opportunity, especially if market momentum continues to build through August.
XRP’s path forward will depend not only on price action but also on broader trends in adoption, regulation, and investor behavior. For now, all eyes remain on whether the cryptocurrency can clear its final technical hurdles and climb toward the next major milestone.
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