As the cryptocurrency market oscillates between economic uncertainty and newfound optimism, XRP once again becomes the center of attention. On the chart, a familiar pattern re-emerges, similar to the pattern that previously triggered a spectacular 70% surge last January. Is this merely a technical coincidence or a precursor to a new bullish cycle? Signals are emerging, analysts are questioning, and risks are very high: could XRP be about to repeat its explosive scenario?
A Technical Signal is Forming: Heading Towards a New Bullish Breakout?
The daily chart of XRP shows a descending wedge structure, while selling pressure on the cryptocurrency has increased.
Currently, the price of XRP is moving within this chart pattern, which has been widely recognized by analysts. This very pattern predicted a 70% increase from December 2024 to January 2025.
Such a technical pattern, combined with a recovery on the 50-day exponential moving average (EMA), recalls the context before that bullish surge, pushing the token price from $2 to $3.39.
At the beginning of August, a similar structure seemed to be forming. XRP is consolidating in a new descending wedge pattern after a strong bullish impulse, while also finding technical support on the 50-day moving average (EMA 50).
On-chain data currently being observed supports the argument for the recurrence of the bullish scenario:
The RSI (Relative Strength Index) has returned from overbought levels to stabilize around 50, similar to the case before the bullish surge in January;
The price is testing the upper limit of the descending wedge; a breakout could trigger a target of $3.75, corresponding to a potential increase of +20%;
If it fails, XRP could drop to the EMA 50, or even down to $2.34, at the 200-day moving average.
The similarity between the two patterns suggests that the cryptocurrency may be on the verge of a new bullish move. However, caution is still needed as long as the technical breakout has not been confirmed.
In addition to technical considerations, the fundamental activity of the XRP Ledger (XRPL) further supports the bullish outlook. According to Dune Analytics, over 70 million transactions were processed on the network in July, while over one million new accounts have been created since the beginning of the year.
In the context of practical adoption often being closely scrutinized as a long-term valuation criterion, these figures show a stark contrast to the apparent volatility of cryptocurrencies. The growth of stablecoins on XRPL is a key component of this network's momentum.
The special report mentions the example of Brazil, where the Brazilian Bank released over $4.2 million in stablecoin BBRL on the XRPL network in July, making this token the second-largest stablecoin by BRL, only behind BRZ from Transfero Group.
In the U.S., the RLUSD stablecoin issued by Ripple has seen daily trading volume more than double in just one month, from 5,000 to over 12,000 transactions per day. These factors reflect the growing adoption of tokenization solutions through XRPL, surpassing mere speculative frameworks.
The increase in the use of this practical network could reinforce positive sentiment around XRP by providing economic legitimacy to the chart signals currently being observed.
Furthermore, a more favorable macroeconomic environment, notably the possibility of the U.S. Federal Reserve (Fed) cutting interest rates in September, could continue to drive interest in risk assets like cryptocurrencies. If the bullish scenario is confirmed, the symbolic threshold of $4 may be tested in the coming weeks.