XRP Price Prediction: XRP Could Gain 20% If This Bullish Pattern Plays Out

XRP (XRP) has gone up by 5% in the past 7 days as cryptocurrencies recovered following an encouraging inflation report from the United States.

In June, prices advanced at a slower pace compared to the market’s expectations. This changed analysts’ projections for interest rates, lowering the odds of a 50-basis-point rate increase.

In addition, a delay in the Fed’s next expected interest rate decision, which the market expects to be a 25 basis point hike, is on the table now as the U.S. central bank could wait a bit more to see if inflation starts to move closer to its 2% target.

Open Interest is Down 33% From Its Recent Peak Traders’ Interest in XRP Remains Weak

Altcoins have been spearheading the latest recovery, led by Ethereum (ETH) and Hyperliquid (HYPE), but other tokens like XRP and Solana (SOL) could start playing catch-up if sentiment and market conditions improve.

For now, traders don’t seem to be willing to come back to the market yet, and that is necessary to trigger the next rally.

Open interest (OI) in XRP futures is still down 33% from its all-time high of July 2025 at $2.4 billion, indicating that speculators are still on the fence about these latest price moves.

Meanwhile, on-chain data from Santiment shows that net inflows to XRP-linked exchange-traded funds (ETFs) turned negative last week, with $6 million flowing out of these vehicles.

Daily active addresses spiked briefly in early July, but they have retreated once again as XRP lost some of that positive momentum.

Finally, net inflows to exchange have started to decelerate, meaning that whales could be getting ready to dump XRP during the next rally. This is a warning sign that calls for extreme caution not to get caught up in another ‘fakeout’.

Inverse Head and Shoulders Pattern Could Anticipate Rally to $1.45

Heading to the daily chart, we can see that a bullish inverse head and shoulders pattern has formed as a result of the latest price action.

This is a high-probability setup that is confirmed once the price breaks above the neckline. However, the upside potential for this pattern is relatively limited, with a projected 20% gain if a breakout occurs based on the distance between the neckline and the head.

The Relative Strength Index (RSI) also confirmed that momentum has flipped to the positive end after rising past the signal line. This crossover is an early sign that bulls are positioning for a strong move.

We also see a chance that XRP could rise to $1.45 if positive momentum gets strong enough, perhaps fueled by hopes of a delay in the Fed’s next rate hike or dovish comments during the next FOMC meeting.

That said, we see a high risk of an invalidation of this pattern due to the high amount of XRP tokens that have been transferred to exchanges in the past few weeks.

We have not yet seen the kind of downturn that typically follows strong spikes in this metric. Hence, sellers could be waiting for this altcoin to get to higher levels to offload their holdings once again.

If this rally rejects a move above $1.13, the odds of a drop to $0.80 will increase dramatically in the near term.