XRP Price Prediction: XRP Could Break $3.66 Despite Sudden Pullback

XRP slipped to $3.10 after recent highs, yet the token remains firmly on traders’ radar as it targets a breakout toward its all-time high of $3.66, backed by steady demand and prevailing market optimism.

Recent trading sessions saw XRP decline around 5%, mirroring the broader bearish trend in the crypto market. However, robust network activity and improving global market conditions—bolstered by softer U.S. inflation data and growing expectations of a September rate cut—could help the token sustain bullish momentum above $3.

Stablecoin Growth on the XRP Ledger

A notable driver of the latest rally has been the surge in stablecoin activity within the XRP Ledger ecosystem. Data shows the combined stablecoin market cap on XRPL expanding by 46% in just one week, reaching around $166 million. Ripple’s RLUSD leads the market, accounting for more than half of this total, reflecting the asset’s growing role in on-chain payments.

XRP was trading at around $3.11, down 4.49% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

This increase in stablecoin adoption is underpinned by rising participation in XRPL’s decentralized finance landscape. The total value locked in related protocols has advanced by 4% over the last 24 hours to $89 million. Higher activity in DeFi generally correlates with increased use of the native token, which in this case adds to the underlying demand for XRP.

Rising Derivatives Activity Signals Market Confidence

The derivatives market offers further signs of bullish sentiment. Open interest has climbed by 9% to reach approximately $8 billion, while daily trading volumes have increased by 20% to $12.5 million. These developments point to traders taking on larger positions in anticipation of a more decisive move.

XRP Futures Open Interest (USD) chart. Source: CoinGlass

Such elevated derivatives activity can often amplify price swings in either direction. At present, the tilt appears to favor the upside, with the stablecoin expansion and positive market sentiment acting as key supports. However, the potential for short-term volatility remains, given the leverage in play.

Technical Outlook: Consolidation Before the Break

At the latest reading, XRP is trading within the $3.10-$3.27 range, consolidating beneath the $3.40 resistance level. This comes after a steady climb from the $3.08 region, a zone that has repeatedly attracted demand during recent pullbacks. Maintaining levels above $3.20 keeps the near-term structure intact and supports a potential push higher.

XRP’s Elliott Wave structure signals a bullish continuation toward $3.41 and potentially above $3.66, with strong momentum, key support holding, and bulls firmly in control. Source: STEEL-CITY-CREATORS on TradingView

Technical indicators are currently aligned with the bullish view. The MACD remains in positive territory, suggesting that momentum is holding. The RSI also stays above its midpoint, reinforcing the case for further gains. A clean break above $3.40 could open the way for a retest of $3.66, with the possibility of fresh highs if buying pressure continues.

Five-Day Accumulation Points to Possible Breakout

Over the past five sessions, XRP has moved within a narrow range between $3.24 and $3.27. This period of sideways action has allowed liquidity to concentrate both above and below the market. On the downside, $3.08 is serving as a base at which buyers might return and form a new basis for further advance.

XRP’s weekly Wave 5 and monthly Wave 3 target $5.20, with a potential extended move reaching $8.10 for a possible year-end blow-off top. Source: Kev4022 on TradingView

If the price keeps going higher, a test of the liquidity at $3.40 may trigger a more aggressive rally. A breakout there would have a tendency to draw more momentum-based participation, which has a tendency to fuel gains faster. The current configuration shows the market preparing for a larger directional move.

Market Context and Outlook

XRP has recorded one of the strongest major cryptocurrency performances in 2025, surging hard from its previous-year levels. Gain has been facilitated by regulatory clarity, rising adoption of XRPL-based assets, and favorable macroeconomic trends. The recent stablecoin boom adds yet more ammunition to the bull narrative.

Key levels to monitor in the near term are $3.40 and $3.66 on the upside and $3.08 and $2.91 on the downside. A move above resistance would confirm the next phase of the rally, while a drop below support may start a short-term correction. Conditions are supportive of further strength at this time, with traders nervously waiting for confirmation of a breakout.