The bullish chart setups point to a further rise of XRP, with price targets close to USD 2.87 and possibly USD 3.72 if the momentum is maintained.
Key takeaways:
The price of #xrp rose around 12% after Ripple appointed BNY Mellon as the custodian of its stablecoin RLUSD.
Traders are betting on an increase in the utility of XRP, as the adoption of RLUSD could shift from Ethereum to XRPL.
The bullish patterns in the chart suggest that XRP could spike to USD 2.87 or even USD 3.72, unless a drop below USD 2 occurs.
XRP 2.03 € has risen over 11.75% during the last week, moving from USD 2.15 to USD 2.40 following the partnership with #Ripple the oldest bank in the United States, BNY Mellon.
BNY Mellon's incorporation into Ripple boosts the utility of XRP
On July 1, Ripple appointed BNY Mellon as the primary custodian of its stablecoin, Ripple USD (RLUSD).
RLUSD has been launched on both the Ethereum blockchain and the XRP Ledger (XRPL), but approximately 87% of its current activity remains concentrated on Ethereum, according to data from DefiLlama.
The distribution of RLUSD across blockchains (by percentage). Source: Defi Llama
Some analysts, including Crypto Eri, suggest that the long-term value of XRP lies in the native presence of RLUSD on the XRPL and its potential shift towards the Ripple ecosystem.
"Ripple (the company) is a long-term player, requiring patience from XRP investors who are waiting for a significant market impact through utility," he wrote in a post on July 8 on X, adding:
"Their public statements about adopting measures to integrate smart contracts into the main network will ultimately position RLUSD on XRPL as a MORE competitive stablecoin, with faster and cheaper settlements than Ethereum."
Demand for XRP could increase if XRPL manages to capture market share from Ethereum in the stablecoin space. Traders may have valued this potential, considering the agreement with BNY Mellon as a sign of growing institutional support.
XRP aims for a 20% rise
XRP has surpassed the neckline of an inverted head and shoulders pattern on the daily chart, which represents a bullish reversal setup.
Daily price chart of the XRP/USD pair. Source: TradingView
The breakout level around USD 2.30 now becomes a potential support, while the structure of the pattern points to an upward target close to USD 2.87, which is approximately 20% more than the breakout level.
This breakout comes with a bullish confirmation on the three-day chart, where XRP appears to be breaking out of a descending triangular range that has lasted several months, as noted by analyst Mikybull Crypto. He commented:
$XRP FINALLY BREAKS OUT UPWARDS
Three-day price chart of the XRP/USD pair. Source: TradingView
Descending triangles that appear during a bullish trend often lead to a breakout. However, in some cases, they can serve as bullish continuation structures.
The persistent rise of XRP above the upper trend line of the triangle could turn out to be the second one. In this scenario, the breakout target of the triangle is around USD 3.72 in August, representing an increase of about 55% from current levels.
A correction below the upper trend line could delay or invalidate the bullish continuation structure, pushing XRP's price towards the lower trend line of the triangle, located at USD 2.