After a quiet August, XRP is back on traders’ watchlists. The token has been consolidating under resistance for weeks, but analysts suggest a breakout could be imminent – with $5 as the next big target. Four major factors could fuel the rally.
On the daily chart, XRP is flashing several bullish formations that hint at renewed momentum. A falling wedge, which began developing after July’s peak, is nearing completion — a pattern that often precedes upward moves. Layered on top of this is a bullish pennant structure, while a larger cup-and-handle continuation pattern suggests longer-term upside.
If these setups play out, XRP could push to $5. The bullish view remains intact as long as the price holds above $2.60.
ETF Approvals Could Be Game-Changing
Perhaps the biggest near-term catalyst lies with the U.S. Securities and Exchange Commission. The agency is currently reviewing eleven XRP spot ETF applications, with final deadlines arriving in October. Applicants include heavyweights such as WisdomTree, Franklin Templeton, and Canary Capital.
After multiple delays, many analysts believe the SEC is unlikely to stall further. The approach of these deadlines could trigger speculative flows, with actual approval sparking large-scale inflows into the asset.
XRP Ledger Gains Traction in Real-World Assets
Beyond speculation, fundamentals are strengthening. The XRP Ledger is emerging as one of the fastest-growing blockchains for real-world asset (RWA) tokenization. Recent data shows a 25% surge in tokenized assets over the past month alone.
Projects like VERT Capital’s $115 million fund, alongside initiatives from OpenEden and Ondo, highlight the growing demand for XRP Ledger’s infrastructure in institutional-grade finance.
RLUSD Stablecoin Adoption Accelerates
Ripple’s U.S. dollar-backed stablecoin, RLUSD, has also gained impressive traction since its launch in December. It now manages more than $680 million in assets and has been integrated into high-profile events such as Bullish’s IPO.
Most recently, RLUSD was added to Horizon, Aave’s new institutional lending marketplace — a sign of its growing role in decentralized finance. The stablecoin’s rise not only expands Ripple’s footprint but also strengthens the case for XRP as a core asset within its ecosystem.
Macro Tailwinds in Play
Adding to the bullish mix, markets are preparing for a potential Federal Reserve rate cut later this year, a move Chair Jerome Powell has hinted at. A more accommodative policy environment could boost risk assets across the board, with XRP well positioned to benefit.
The Bottom Line
With bullish chart setups, ETF speculation, rising RWA activity, and RLUSD adoption all converging, XRP may finally be primed for liftoff. If momentum builds in September, $5 is a realistic target — marking one of the year’s biggest moves in the crypto market.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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