Key takeaways:
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XRP price jumped around 12% after Ripple named BNY Mellon as custodian for its RLUSD stablecoin.
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Traders are betting on increased XRP utility as RLUSD adoption potentially shifts from Ethereum to XRPL.
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Bullish chart patterns suggest XRP could rally toward $2.87 or even $3.72, barring a breakdown below $2.
XRP (XRP) has surged more than 11.75% over the past week, climbing from $2.15 to $2.40 following Ripple’s partnership with America’s oldest bank, BNY Mellon.
BNY Mellon onboarding Ripple boosts XRP utility case
On July 1, Ripple appointed BNY Mellon as the primary custodian of its stablecoin, Ripple USD (RLUSD).
RLUSD has gone live on both Ethereum and the XRP Ledger (XRPL) blockchains, but approximately 87% of its current activity remains concentrated on Ethereum, according to DefiLlama data.
Some analysts, including Crypto Eri, suggest the long-term value for XRP lies in RLUSD’s native presence on XRPL and its potential shift toward Ripple’s ecosystem.
“Ripple (the company) is a long-game player, demanding patience from XRP investors anticipating significant market impact through utility,” she wrote in a July 8 post on X, adding:
“Its public statements to take steps to integrate smart contracts on the mainnet will eventually position RLUSD on XRPL, as a MORE competitive stablecoin, with faster and cheaper settlements than Ethereum.”
Demand for XRP could rise if XRPL can take stablecoin market share from Ethereum. Traders may have been pricing in such potential, viewing the BNY Mellon deal as a signal of growing institutional support.
XRP breakout targets 20% gains
XRP has broken above the neckline of an inverse head-and-shoulders pattern on the daily chart, a bullish reversal setup.
The breakout level around $2.30 now flips into potential support, while the pattern’s structure points to an upside target near $2.87, or roughly 20% higher from the breakout.
This breakout comes alongside bullish confirmation on the 3-day chart, where XRP appears to be exiting a multimonth descending triangle range, as spotted by analyst Mikybull Crypto. He commented:
$XRP FINALLY BREAKING OUT
Descending triangles appearing during an uptrend often lead to a breakdown. But, in some cases, they can serve as bullish continuation structures.
XRP’s persistent climb above the triangle’s upper trendline may turn out to be the latter. In this scenario, the triangle breakout target is around $3.72 in August, up around 55% from current levels.
Related: XRP price must break this key level to reclaim $3
A correction below the upper trendline may delay or invalidate the bullish continuation structure, pushing XRP’s price down toward the triangle’s lower trendline at $2.
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.
