Key Points:
After Ripple announced the appointment of BNY Mellon as the custodian for its RLUSD stablecoin, the price of XRP rose by approximately 12%.
Traders are betting that the potential adoption of RLUSD transitioning from Ethereum to XRPL will enhance the utility of XRP.
Bullish chart patterns suggest that XRP could rise to $2.87 or even $3.72, provided it does not fall below $2.
XRP (XRP) has increased by over 11.75% in the past week, climbing from $2.15 to $2.40 following Ripple's partnership with the oldest bank in the U.S., BNY Mellon.
On July 1, Ripple appointed BNY Mellon as the primary custodian for its stablecoin Ripple USD (RLUSD).
RLUSD has been launched on both the Ethereum and XRP Ledger (XRPL) blockchains, but according to DefiLlama data, approximately 87% of the activity is still concentrated on Ethereum.
Some analysts, including Crypto Eri, point out that the long-term value of XRP lies in the native presence of RLUSD on XRPL and its potential to transition into the Ripple ecosystem.
"Ripple (the company) is a long-term player, and XRP investors expecting significant market impact through utility should remain patient," she wrote in a post on X on Tuesday, adding:
If XRPL can capture stablecoin market share from Ethereum, demand for XRP may rise. Traders may have already priced in this potential, viewing the BNY Mellon deal as a signal of institutional support growth.
XRP has broken through the neckline of an inverse head and shoulders pattern on the daily chart, which is a bullish reversal pattern.
The breakout level around $2.30 has now turned into a potential support level, while the structure of the pattern points to an upward target near $2.87, about 20% higher than the breakout point.
This breakout is accompanied by bullish confirmation on the three-day chart, and XRP appears to be emerging from a multi-month descending triangle range, as noted by analyst Mikybull Crypto. He commented:
Descending triangles that appear in an uptrend typically lead to declines. However, in some cases, they can serve as bullish continuation structures.
A sustained rise of XRP above the upper trend line of the triangle may prove to be the latter. In this case, the triangle breakout target is around $3.72 in August, approximately 55% higher than the current level.
If there is a pullback below the upper trend line, it may delay or invalidate the bullish continuation structure, pushing the price of XRP toward the lower trend line of the triangle near $2.
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Original: “XRP Finally Breaks Out, Rises 12% After Ripple's Agreement with BNY Mellon”
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