XRP is expected to break through $5, RLUSD's adoption in the DeFi sector surges, boosting bullish sentiment | XRP price prediction

The price of XRP is forming a bullish structure, currently trading at $3.15, with a rise of 3.27% in the last 24 hours. As RLUSD's trading volume on Aave reaches an all-time high, XRP's influence within the Decentralized Finance (DeFi) ecosystem is rapidly increasing, market sentiment is turning positive, and it is expected to challenge the target of $5 or even higher.

XRP builds an arc bottom pattern, $5 becomes the main target

After hitting $3.40 in January, XRP fell into a correction, dipping to a low of $1.61 on April 7. It then experienced three months of sideways consolidation until July, when bulls re-entered the market and the price quickly surged from $1.96 to the two-week high of $3.66.

This series of fluctuations has formed the "round bottom" pattern in technical analysis, indicating that the market has completed its bottoming process and is expected to welcome a stronger rebound. The first target calculated based on the pattern is $5.13, with a rise of 52%. If the upward momentum continues, the second target will be $7.04.

Technical indicators also support this bullish view. The Relative Strength Index (RSI), despite a 40% price rise in July, has not yet entered the overbought zone. Unless the RSI breaks above 90 (which occurred last December), there is no need to worry about a pullback in the short term.

(XRP/USDT Weekly Chart | Source: TradingView)

In addition, CoinGape's technical analysis also detected a "bullish flag" pattern, with a target price set at $5.90, further strengthening the expectations for the pump.

The active performance of RLUSD on Aave stimulates the rise potential of XRP

Another catalyst for the rise of XRP comes from the active performance of the RLUSD stablecoin in the DeFi space. Sentora data shows that the volume of RLUSD on Aave has soared to 54 million USD, setting a new historical high. Aave, as the leading platform in the DeFi space, this breakthrough indicates that RLUSD is expanding its position within the DeFi ecosystem.

The strong performance of RLUSD has also caught the attention of Ripple executive Jack McDonald. He stated on platform X that this growth is "explosive" and mentioned that RLUSD has surpassed USDC and USDT in the BlueChip stablecoin rankings, showing its recognition in the DeFi market is rapidly rising.

The increase in DeFi activities not only enhances the value of RLUSD itself but also injects strong narrative support for XRP. As a core asset in the Ripple ecosystem, XRP may benefit from the widespread adoption of RLUSD, further boosting investor confidence.

Buy interest continues to grow, August may迎来"one-sided pump"行情

After entering August, the trend faced by XRP seems to have only one direction – "pump". With the bullish patterns in the technical analysis, RLUSD driving force, and the revival of buying interest, market expectations are quickly turning positive.

If the current momentum is maintained, XRP is not only expected to break through the $5 level but may also initiate a medium to long-term bullish market.

Conclusion: XRP's current technical pattern, RLUSD's performance in Decentralized Finance and market sentiment collectively create a positive pump environment. As institutional and retail interest in the Ripple ecosystem rises, XRP is expected to see a significant breakthrough in August. Investors should pay attention to the testing of the $5 key resistance to confirm whether a new round of strong upward trend is forming.