Key Highlights:
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XRP is reflecting a bullish fractal pattern that previously triggered a 70% rally earlier this year.
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Currently, XRP is approaching a 20% breakout from a falling wedge pattern, with $3.75 as the target price in August.
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Growth on the XRP Ledger and increased stablecoin activity further support the bullish outlook toward $4.00.
XRP’s current price action echoes the bullish fractal observed in early 2025, suggesting a potential strong upward move soon. This technical similarity raises hopes for continued gains through August.
Falling Wedge Indicates Possible 20 Percent Rally in August
Between December and January, XRP’s price consolidated inside a falling wedge while maintaining support above its 50-day exponential moving average (EMA).
This consolidation resolved with an upward breakout in early January, reclaiming the 20-day EMA as support and driving a 70% price increase within a few weeks — climbing from approximately $2 to above $3.39.
XRP/USD daily price chart. Source: TradingView
In August, XRP is again forming a falling wedge after a sharp rally, bouncing off the 50-day EMA and turning the 20-day EMA into support. The relative strength index (RSI) has also pulled back from overbought levels near 70 to stabilize around 50, resembling the conditions before the prior breakout.
This pattern suggests that XRP could soon attempt a breakout above the wedge’s upper trendline, targeting a rise to $3.75, representing a gain of over 20% from current levels.
XRP/USD daily price chart. Source: TradingView
However, if the price is rejected at the upper trendline, a retest of the 50-day EMA as support may occur. Breaking below the 50-day EMA could increase the risk of a drop toward the wedge apex near the 200-day EMA at about $2.34.
Several analysts forecast XRP surpassing the $4 mark during this cycle, supported by increased whale accumulation and the possibility of a Federal Reserve rate cut in September that could boost risk appetite.
Related: Bitcoin rejects at $116K despite US jobs report; Fed rate cut bets exceed 75%
Robust Fundamentals Support XRP’s Growth
The XRP Ledger processed over 70 million transactions in July 2025, with more than one million new accounts created this year, according to Dune Analytics data.
XRPL daily new accounts and total growth. Source: Dune Analytics
XRPL stablecoins are a key driver of network expansion. For example, the Braza Bank in Brazil issued over $4.2 million worth of its BBRL stablecoin on the XRP Ledger in July, ranking as the second largest BRL stablecoin after Transfero Group’s BRZ.
XRPL BRL stablecoin holders and supply by token. Source: Dune Analytics
In the United States, Ripple’s RLUSD stablecoin activity surged, with daily transfers increasing from about 5,000 to over 12,000 within a month, bolstering XRP’s utility and user adoption narrative.
This upward momentum reinforces the optimistic outlook for XRP rallying toward the $3.75 to $4.00 range in the near term.
This article is for informational purposes only and does not constitute investment advice. Trading cryptocurrencies involves risk; readers should conduct their own research before making decisions.
