Key takeaways:
-
XRP is mirroring a bullish fractal that led to a 70% rally earlier this year.
-
Price eyes a 20% breakout from a falling wedge, targeting $3.75 in August.
-
XRPL growth and stablecoin activity bolster the case for a move toward $4.
XRP’s (XRP) latest price action is echoing a bullish fractal from earlier this year, raising the prospect of a strong upside continuation in August.
XRP falling wedge hints at 20% rally in August
Between December and January, XRP consolidated inside a falling wedge pattern while holding firm above its 50-day exponential moving average (50-day EMA; the red wave).
The pattern resolved with a breakout to the upside in early January, reclaiming the 20-day EMA (the purple wave) as support and fueling a 70% price surge — from around $2 to above $3.39 — within weeks.
As of August, XRP is once again consolidating within a falling wedge after a steep rally, while bouncing from its 50-day EMA and flipping the 20-day EMA back into support.
In both cases, XRP’s relative strength index (RSI) pulled back sharply from overbought levels and stabilized near 50, a reset that preceded a breakout in January.
The similarities between the two patterns suggest that XRP could be on the verge of another strong move upward.
As of Tuesday, the cryptocurrency is testing the wedge’s upper trendline for a potential breakout toward $3.75, up by over 20% from the current price levels, in August.
A rejection at the upper trendline could delay the breakout, with XRP likely retesting the 50-day EMA as support. A close below this level risks a drop toward the wedge apex near the 200-day EMA around $2.34.
Some analysts expect XRP to break above $4 this cycle, owing to whale accumulation and a potential Federal Reserve rate cut in September that may fuel risk appetite overall.
Related: Bitcoin rejects at $116K despite US jobs win as Fed rate cut bets pass 75%
XRP’s fundamentals remain robust
Ripple’s XRP Ledger processed over 70 million transactions in July 2025, while more than 1 million new accounts have been created this year, according to data resource Dune Analytics.
XRPL’s stablecoins have been a major part of its network growth.
In Brazil, Braza Bank issued over $4.2 million worth of its BBRL stablecoin on XRPL in July, making it the second-largest BRL stablecoin after Transfero Group’s BRZ.
In the US, activity around Ripple’s RLUSD has surged, with daily transfers rising from about 5,000 to over 12,000 within one month.
XRPL’s growing stablecoin activity and user adoption strengthen its utility narrative, reinforcing bullish sentiment that could support XRP’s rally toward the $3.75-4.00 range.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
