XRP is repeating bullish technical patterns from early 2025, indicating a potential 20% breakout toward the $3.75–$4.00 range supported by strong XRPL growth and stablecoin adoption.
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XRP mirrors a fractal that previously led to a 70% rally earlier this year.
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Price consolidates in a falling wedge, eyeing a breakout above $3.75 in August.
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XRPL’s transaction volume and stablecoin issuance bolster bullish momentum toward $4.
XRP’s bullish technical setup targets a 20% rally to $3.75–$4.00 amid XRPL growth and stablecoin activity. Stay updated with COINOTAG’s expert analysis.
How Does XRP’s Falling Wedge Pattern Indicate a 20% Rally in August?
XRP’s price action is currently forming a falling wedge pattern similar to the one seen between December and January 2025. During that period, XRP held above its 50-day exponential moving average (EMA) and broke out to fuel a 70% rally from about $2 to over $3.39. The current consolidation shows XRP bouncing off the 50-day EMA and reclaiming the 20-day EMA as support, signaling a potential breakout toward $3.75 in August.
What Are the Key Technical Indicators Supporting XRP’s Upside Potential?
The relative strength index (RSI) for XRP recently pulled back from overbought levels and stabilized near 50, mirroring the reset before the January breakout. XRP is testing the upper trendline of the falling wedge, and a successful breakout could trigger a 20% price increase. However, a rejection might lead to a retest of the 50-day EMA, with a risk of dropping toward the wedge apex near the 200-day EMA at approximately $2.34.
XRP/USD daily price chart. Source: TradingView
Why Do XRP’s Fundamentals Support a Rally Toward $4?
Ripple’s XRP Ledger (XRPL) continues to demonstrate robust growth, processing over 70 million transactions in July 2025 and surpassing 1 million new accounts created this year. This expansion is driven largely by stablecoin activity, which enhances XRPL’s utility and adoption.
How Is Stablecoin Activity Influencing XRPL’s Growth?
In Brazil, Braza Bank issued more than $4.2 million worth of its BBRL stablecoin on XRPL in July, ranking it as the second-largest BRL stablecoin after Transfero Group’s BRZ. Meanwhile, in the United States, Ripple’s RLUSD stablecoin saw daily transfers surge from around 5,000 to over 12,000 within one month, highlighting increasing user engagement and network utility.
XRPL daily new accounts and cumulative growth. Source: Dune Analytics
XRPL’s BRL stablecoin holders/supply by token. Source: Dune Analytics
| Metric | Current Value | Comparison |
|---|---|---|
| XRPL Transactions (July 2025) | 70 million+ | Record high monthly volume |
| New XRPL Accounts (2025) | 1 million+ | Significant user growth |
| RLUSD Daily Transfers | 12,000+ | More than doubled in one month |
What Are the Risks and Potential Catalysts for XRP’s Price Movement?
While technical patterns suggest a bullish breakout, XRP faces resistance at the falling wedge’s upper trendline. A failure to break above this level could result in a retest of the 50-day EMA. Additionally, macroeconomic factors like a potential Federal Reserve rate cut in September may increase risk appetite, further supporting XRP’s upside potential.
Frequently Asked Questions
What technical pattern is XRP currently forming?
XRP is forming a falling wedge pattern, a bullish technical setup that often precedes a price breakout to the upside, similar to its pattern in early 2025.
Why is XRP’s stablecoin activity important for its price?
Stablecoin issuance and transfers on the XRPL increase network utility and adoption, which can boost investor confidence and support price appreciation.
Key Takeaways
- Technical Setup: XRP’s falling wedge pattern suggests a potential 20% breakout toward $3.75–$4.00.
- Fundamental Growth: XRPL’s transaction volume and stablecoin issuance continue to expand, reinforcing bullish sentiment.
- Market Catalysts: Macro factors such as a possible Federal Reserve rate cut could enhance XRP’s rally prospects.
Conclusion
XRP’s repeating bullish fractal and strong fundamentals position it for a possible rally toward the $3.75–$4.00 range in August. Continued growth in XRPL transactions and stablecoin activity underpin this outlook, while market conditions remain favorable. Investors should watch key technical levels and macroeconomic developments closely as the cryptocurrency aims for its next breakout.
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XRP is showing strong bullish signs by repeating technical patterns from its early 2025 rally, highlighting key price targets between $3.75 and $4.00.
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The falling wedge pattern combined with stablecoin growth on XRPL supports optimistic price momentum for August.
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COINOTAG’s analysis emphasizes XRP’s technical and fundamental strengths, providing a clear outlook for investors.
XRP’s bullish technical setup and XRPL’s expanding ecosystem point to a potential 20% rally to $3.75–$4.00. Follow COINOTAG for expert crypto insights.
