XRP Price Prediction: Regulatory Breakthrough Combined with Interest Rate Cut Expectations Ignite Market Sentiment Technical Indicators Suggest $5 Target is Within Reach

After a two-week pullback, Ripple (XRP) has risen nearly 3% against the trend within 24 hours, now stabilizing above the key support level of $2.70. Despite a recent contraction in volume, the macro environment is turning favorable for crypto assets: escalating trade frictions weaken the dollar's position, and expectations for Fed rate cuts are rekindled. Meanwhile, the Innovation Act (S.3617) paves the way for stablecoins, and Ripple's native stablecoin RLUSD is expected to explode in the ecosystem with regulatory tailwinds. Technically, a weekly bull flag breakout is confirmed, and a bullish engulfing pattern has appeared on the daily chart. Analysts predict that if the $2.65 support holds, XRP will target $5 within 4-8 weeks. The on-chain burn mechanism and RLUSD adoption rate may become catalysts for long-term value.

[Macroeconomic Benefits Resonance Increases Appeal of Crypto Assets] The current market environment is creating unique opportunities for Crypto Assets:

• Escalation of Trade Friction: The threat of tariffs intensifies and the White House adopts a tough stance, raising questions about the status of the dollar and enhancing the appeal of Crypto Assets as a safe haven.
• Fed's Rate Cut Expectations: Although Q2 GDP exceeded expectations, the growth was mainly driven by a surge in imports (companies preemptively responding to tariffs), and the moderate rise in inflation has not altered the Fed's easing path. The Fed may be forced to choose between controlling inflation and supporting growth, which is favorable for risk assets.
• USD Uncertainty: During the turbulent period of the global economic landscape, the appeal of cryptocurrencies as an alternative value storage tool has significantly increased.

【Regulatory Breakthrough Ignites RLUSD Ecosystem Expectations】 The passage of the "Innovation Act" ( GENIUS Act ) marks a new era in the regulation of stablecoins in the United States, highlighting Ripple's core advantages:

• Its native stablecoin Ripple USD ( RLUSD ) will benefit from a clear regulatory framework, accelerating integration with mainstream payment platforms.
• If decentralized application ( dApp ) opens RLUSD payment scenarios, it will ignite the demand for stablecoins, thereby feeding back into the XRP ecosystem:
  • Increase the volume of Ripple network transactions
  • Accelerate the XRP token Burn Mechanism (by burning XRP through each RLUSD transaction)
• Clarification of regulations significantly reduces the compliance uncertainty risk premium for XRP.

【Technical Weekly Flag Breakthrough Daily Chart Reversal Signal Established】 Key bullish technical structure confirmed by price trends:

1. Weekly Bull Flag Breakout: The uptrend that started in October 2024 has confirmed its continuation after a flag pattern consolidation, indicating that a large upward space is opening up.
2. Key support is effective: After a healthy pullback following four consecutive weeks of pump, it precisely touched the preset support at 2.65 USD, and is currently stabilizing at 2.70 USD, verifying the bullish defense line is solid.
3. Daily Chart Reversal Signal: The latest daily candlestick has formed a bullish engulfing pattern, and the price has made a "higher high", indicating that buying pressure has surpassed January levels, greatly increasing the probability of a trend reversal.
4. RSI Bottoming Signs: Although the daily chart relative strength index is still in a downward channel, the price rebound combined with the potential bottom divergence pattern of the indicator suggests that if incremental funds continue to flow in, it will confirm a reversal.

[Operational Strategy and Target Path]

• Short-term Strategy: Current price layout needs to leave room for volatility, and stop-loss can be set below 2.50 USD (to deal with potential liquidity cleansing).
• Upward Target:
  • Breaking through recent highs to start a new uptrend
  • Core Objective: Reach 5 USD within 4-8 weeks
• Key Risk Control Point: If the weekly closing price falls below 2.65 USD, the trend needs to be reassessed.

Conclusion: XRP demonstrates resilience during macro headwinds, firmly establishing a key technical support at $2.70, which releases positive signals. The dual benefits of expectations for a Fed policy shift and the thawing of stablecoin regulation, especially the ecological potential of RLUSD, may reshape XRP's value capture mechanism. Technically, the bullish flag breakout at the weekly level resonates with the reversal pattern on the daily chart. If incremental funds support a breakout above the previous highs, the path to a $5 target by the end of the third quarter will become clearer. Investors need to closely monitor the defense of the support zone at $2.65-$2.70, progress on the RLUSD ecosystem, and the Fed's September interest rate meeting, as these factors could serve as key triggers for igniting a new wave of XRP's main bullish rally.