XRP is back in the spotlight. The token saw a major jump on Monday, July 21, extending a rally that began nearly a month ago, when XRP hit a low of $1.91 on June 22.
Now trading at around $3.55, XRP has surged more than 120% from its April bottom and the momentum doesn’t seem to be slowing down.
What’s Driving the XRP Rally?
Several catalysts are fueling this rise, but the biggest may be the recent signing of the GENIUS Act by former President Donald Trump. The new law favors compliant stablecoins, and that’s great news for Ripple’s own RLUSD, launched in December 2024.
RLUSD has met all the requirements laid out in the GENIUS Act and has rapidly gained ground in the stablecoin space. Its market cap now exceeds $520 million, putting it in direct competition with PayPal’s PYUSD.
According to a recent report from a stablecoin research firm, RLUSD is considered the safest stablecoin on the market, thanks to its transparency and the fact that its assets are held with the Bank of New York Mellon.
Growing Institutional Interest
It’s not just the retail crowd jumping in institutional investors are showing serious interest in XRP too.
Take the Teucrium 2x XRP ETF, for example. Just three months after launch, it’s gaining steam, with assets under management nearing $500 million. That’s a strong signal that Wall Street is warming up to altcoins like XRP, and experts believe this trend could pave the way for even more inflows once spot XRP ETFs receive SEC approval.
At the same time, XRP’s futures market is also heating up. Open interest which tracks the total number of active futures contracts has spiked to an all-time high of $10.8 billion, a massive jump from earlier this year when it dipped below $500 million.
Technical Outlook: Is $5 in Sight?
From a technical standpoint, things are looking very bullish.
The daily chart shows that XRP has formed a textbook cup-and-handle pattern. The cup’s base sits at $1.61, while the upper resistance is around $3.40 giving it a 52% depth. Based on the structure of the pattern, a potential breakout could send XRP soaring to $5.20, significantly above its current level.
It’s also worth noting that XRP remains well above its 50-day and 200-day Exponential Moving Averages (EMAs) typically a strong indicator of continued upward momentum.
However, there’s a key support level at $3.00. If XRP dips below that, it could signal a short-term pullback and invalidate the bullish outlook.
Bottom Line
With regulatory tailwinds, increasing institutional demand, and bullish technicals, XRP is showing all the signs of a breakout season. If the trend continues, $5 may not be far off making XRP one of the top altcoins to watch closely in the coming weeks.
