Behind XRP’s New High: The Dual Drivers of Fundamentals and Technicals

Background of XRP’s Recent Breakout to New Highs

Chart: https://www.gate.com/trade/XRP_USDT

In July 2025, XRP delivered a standout performance, climbing from approximately $2.30 at the start of the month and breaking through a new local high of $3.66 on July 18. In less than three weeks, the price rose by more than 50%, making XRP a top performer among major cryptocurrencies this market cycle.

This rally did not happen by chance. Favorable developments within the Ripple ecosystem, strengthened market expectations, and supportive macroeconomic conditions drove the surge.

Ripple Fundamentals Fuel Positive Market Sentiment

Recently, Ripple has released a string of positive announcements, including but not limited to:

• Rollout of RLUSD Stablecoin: Ripple has announced the launch of RLUSD—a U.S. dollar-pegged stablecoin—on the XRP Ledger, designed for payment and settlement use cases. This move is expected to significantly boost demand for XRP in real-world payment networks.
• Expansion of Cross-Border Payments: Ripple continues to grow its cross-border payment business, partnering with financial institutions in Latin America, Southeast Asia, and other regions to make XRP a core asset for international remittances.
• Signs of Regulatory Relief: The U.S. SEC has recently refrained from imposing new sanctions against Ripple. Markets interpret this as a temporary easing of regulatory pressures, supporting XRP’s long-term prospects.

Together, these developments have strengthened confidence in XRP as a “utility crypto asset,” attracting substantial inflows of capital.

Technical Analysis: Strong Bullish Setup

Chart analysis shows XRP is currently exhibiting a robust bullish structure:

• Moving Averages: The 5-day, 10-day, and 20-day moving averages are rising in sequence, providing strong support.
• RSI Indicator: Now near 66, the RSI has not yet reached overbought territory, leaving potential for further gains.
• MACD: The continuing expansion of the MACD histogram indicates strengthening momentum and suggests further short-term upside potential.

If XRP can hold above $3.50 and break through $3.60 with increased volume, the next targets could be in the $3.75 to $4.00 range.

However, if sustained volume does not materialize, a period of consolidation at higher levels is possible. Avoid chasing the top without clear confirmation.

How Investors Should Respond to XRP’s New Highs

For typical investors, especially those new to the market, a “steady and strategic” approach is recommended when XRP reaches new highs:

1. Implement a Staggered Buying Plan: Avoid going all-in at once. Instead, consider accumulating in stages within the $3.30–$3.50 range and adding only after a confirmed breakout.
2. Dynamic Take-Profit and Stop-Loss Planning: In an uptrend, set stop-loss levels below $3.20, with take-profit targets at $3.75, $4.00, and $4.20, adjusting as the price action unfolds.
3. Stay informed on Ripple announcements and on-chain data: Fundamental updates remain pivotal for assessing medium- and long-term value.
4. Avoid buying out of fear of missing out: The main phase of price acceleration has already occurred. Avoid entering positions at sentiment-driven peaks.

Risk Warnings and Trading Recommendations

Despite XRP’s strong upward momentum, multiple uncertainties remain, including changes in global policy, the trajectory of U.S. interest rates, and residual legal risks related to Ripple.

In the current environment, consider the following recommendations:

• Short-term traders should closely monitor the $3.43 and $3.30 support levels. If either is breached, consider reducing exposure.
• Medium- and long-term holders might focus on value opportunities tied to Ripple’s stablecoin initiatives and compliance-driven expansion.
• Track large capital flows and large on-chain transactions to avoid falling victim to major market players.

Conclusion

XRP’s current rally represents more than just a price breakout—it’s a renewed market assessment of its ecosystem value. With Ripple’s expansion in stablecoins and cross-border payments, backed by strong technical signals, XRP could continue to drive structural trends among leading cryptocurrencies.

Still, investors should keep a level head, avoid chasing the rally, and remain flexible to achieve robust returns in the next market phase.