If you’ve been tracking XRP’s (XRP-USD) price action closely, you might feel like you’ve seen this all before, and you wouldn’t be wrong. The token is tracing out the same technical setup that triggered a 70% breakout earlier this year. And if history rhymes, this could be the calm before another monstrous move.
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Right now, XRP is trading around $3.07 and forming a textbook falling wedge pattern, the same setup that catapulted it from $2 to over $3.39 back in January. This rally was fast, and it caught most of the market off guard. Today’s chart is starting to look like a carbon copy, and it’s got traders bracing for another vertical run.
This Is a Classic Setup with a New XRP Price Target
XRP is forming what traders call a “falling wedge” pattern, and it’s easier to understand than it sounds. Basically, the price has been drifting lower, but each dip is getting smaller and each bounce is also a bit weaker. That creates a wedge shape on the chart. At the same time, XRP is still holding above its 50-day moving average, which is a key trend line that many traders use to judge whether an asset is in a healthy uptrend. Holding above it usually means buyers are still in control. That’s exactly how the last breakout started. Back then, once XRP reclaimed the 20-day EMA as support, the floodgates opened.
Today, the same reclaim just happened. XRP flipped the 20-day back into support, and its RSI has reset to neutral. That’s typically the sweet spot before momentum kicks in. If the breakout confirms, a measured move points to $3.75. That’s about a 20% upside from here, and that could be just the first stop.
It could even go higher. Some analysts say $4 is well within reach, especially if the Fed cuts rates in September. Rate cuts have a history of igniting risk-on assets, and XRP would be one of the first names on that list.
The Fundamentals Are Just as Bullish
Behind the chart, the fundamentals are just as bullish. XRP Ledger (XRPL) is moving some serious volume. In July alone, it processed over 70 million transactions. It may sound like it’s just whales shuffling funds, but actually over 1 million new accounts were created this year. This tells us that a wider user base is joining the ecosystem.
Then there’s the stablecoin story. Brazil’s Braza Bank just issued over $4.2 million in BBRL stablecoins on XRPL, now the second-largest BRL stablecoin in the country. In the US, activity around Ripple’s RLUSD has more than doubled in just a month. This kind of traction tells us that XRP is becoming the infrastructure for real-world transactions.
What Could Go Wrong?
This isn’t a free pass to all-time highs. If XRP gets rejected at the upper wedge trendline, it could pull back to the 50-day EMA. A drop below that opens the door for a retest of $2.34. That’s the wedge apex, and breaking it would throw the whole setup into question.
But until then, the chart is ticking all the same boxes it did before the last parabolic rally.
At the time of writing, XRP is sitting at $3.0625.
