According to Cointelegraph, XRP is currently exhibiting a bullish fractal pattern reminiscent of a previous rally earlier this year, suggesting a potential upward movement in August. The cryptocurrency is consolidating within a falling wedge pattern, a technical formation that often precedes a breakout. Earlier this year, XRP experienced a similar pattern between December and January, which resulted in a significant price surge of 70%, climbing from around $2 to over $3.39. This pattern was characterized by XRP maintaining its position above the 50-day exponential moving average (EMA) and eventually breaking out to reclaim the 20-day EMA as support.
As of August 2025, XRP is once again navigating a falling wedge after a notable rally, with its price bouncing off the 50-day EMA and turning the 20-day EMA into a support level. The relative strength index (RSI) for XRP has also shown a similar trajectory, pulling back from overbought levels and stabilizing near 50, a move that previously signaled a breakout. Currently, XRP is testing the upper trendline of the wedge, with a potential breakout targeting $3.75, representing a 20% increase from its current price levels. However, a rejection at this trendline could delay the breakout, possibly leading XRP to retest the 50-day EMA as support. A close below this level might result in a decline toward the wedge apex near the 200-day EMA, around $2.34.
Analysts are optimistic about XRP's potential to surpass $4 in this cycle, driven by factors such as whale accumulation and the possibility of a Federal Reserve rate cut in September, which could enhance risk appetite. The fundamentals of XRP remain strong, with the Ripple XRP Ledger processing over 70 million transactions in July 2025 and more than 1 million new accounts created this year, as reported by Dune Analytics. The growth of stablecoins on the XRP Ledger has been a significant contributor to its network expansion. In Brazil, Braza Bank issued over $4.2 million worth of its BBRL stablecoin on the XRP Ledger in July, making it the second-largest BRL stablecoin after Transfero Group's BRZ. In the United States, activity surrounding Ripple's RLUSD has increased, with daily transfers rising significantly within a month. This growing stablecoin activity and user adoption bolster XRP's utility narrative, supporting the bullish sentiment that could drive XRP's price toward the $3.75-4.00 range. Readers are reminded that this article does not offer investment advice, and all trading decisions should be made based on individual research and risk assessment.
