XRP Price News: Road to $5 Seems Paved After Successful Retest of Key Support

XRP (XRP) has gone up by nearly 3% in the past 24 hours and has started to show signs of a recovery after a two-week pullback.

Trading volumes have been relatively low lately as positive momentum has taken a brief pause. Last week was quite relevant for the financial markets as the market was flooded with economic data.

The overall picture favors the continuation of crypto’s latest rally as tariff threats are mounting and the White House seems unwilling to negotiate or cave. At point of high uncertainty where the dollar’s strength is under question, cryptos stand to rise.

Supportive Regulations and Lower Rates Favor XRP

The Federal Reserve could be forced to lower interest rates if it sees a slowdown in economic growth.

Although the gross domestic product (GDP) expanded at a much stronger rate during the second quarter than analysts expected, most of this growth came from higher imports as companies prepared for a new commercial scenario marked by higher levies.

PCE Price Index Variation – Source: Bureau of Economic Analysis

Inflation ticked higher as well but not to the point that it may scare off the Fed into scrapping their planned interest rate cuts. The U.S. central bank could be ultimately forced to choose between keeping inflation at bay and fostering economic growth.

The Genius Act has paved the way for a new season for stablecoins in the U.S. and Ripple is positioned favorably to reap the benefits of a clearer regulatory landscape through its native stable asset Ripple USD (RLUSD).

If this stablecoin is embraced by payment platforms and new decentralized applications are launched to allow the crypto community to make payments with their preferred stablecoins, the demand for RLUSD could skyrocket and that will result in a higher XRP burn rate and higher transaction volumes across the Ripple network.

XRP Could Rise to $5 After Key Support Bounce

In our latest XRP price prediction, we shared a weekly chart that confirmed a bullish breakout of a long-standing bull flag pattern.

This pattern’s confirmation anticipated a huge move for XRP as the rally that started in October 2024 is now poised to continue.

The market needed a breather after a relentless 4-week rally and we defined the $2.65 level as the key support to watch.

Thus far, we have seen this trajectory be followed to the letter and are already seeing a positive reaction as the price hit $2.70.

The latest move upwards made a higher high, meaning that buying interest is stronger than it was in January. Hence, the odds favor a bullish scenario for XRP in the mid-term.

XRP/USD Daily Price Chart (Coinbase) – Source: TradingView

Meanwhile, a bullish engulfing candle in the daily chart could have been the confirmation we needed to anticipate a trend reversal. A short-term position would set its stop loss with sufficient wiggle room for a liquidity sweep down to $2.50 while a bullish target for XRP may be set at $5 in the next 4 to 8 weeks.

The Relative Strength Index (RSI) is still on a downward path in this daily time frame but this is an encouraging move that could pave the way for a recovery if enough buyers step after this bounce.