XRP Price Analysis: RLUSD Growth Could Drive Token to $4 Target

• XRP trades at $2.27 with a 9.6% year-to-date gain, while RLUSD stablecoin surged 815% in market cap. 

• Technical analysis shows a falling wedge pattern that could push XRP to $4 with a potential 70% rally. 

• RLUSD’s growth toward a $1 billion market cap and increasing bank adoption may trigger XRP’s next major price breakout.

XRP has posted a 9.6% gain year-to-date, currently trading at $2.27 as of July 7, 2025. The token’s performance coincides with remarkable growth in Ripple’s RLUSD stablecoin, which has surged over 815% in market capitalization during the same period. Technical analysts suggest this momentum could propel XRP toward the $4 price.

RLUSD Market Cap Surge Outpaces Major Competitors

RLUSD’s market capitalization has expanded from $53 million at the start of 2025 to $485 million, representing an eightfold increase in six months. This growth trajectory positions RLUSD as one of the fastest-expanding projects in the cryptocurrency sector.

The stablecoin’s performance significantly outshines established competitors. Tether’s USDT recorded only a 15% market cap increase during the same timeframe, while USDC managed a 44% gain, according to CoinMarketCap data. RLUSD’s rapid expansion brings it closer to the $1 billion market cap milestone.

Several factors contribute to RLUSD’s accelerated adoption. US legislators have designated the upcoming week as “Crypto Week,” during which they will debate cryptocurrency-focused legislation, including the GENIUS Act. This bill could provide regulatory advantages for US-based stablecoins like RLUSD over international alternatives such as USDT.

Ripple’s application for a banking license represents another catalyst for institutional adoption. Regulatory approval would facilitate broader acceptance of RLUSD among traditional financial institutions while potentially triggering additional XRP price appreciation.

The stablecoin has also gained traction in traditional banking systems. Swiss-based AMINA Bank recently announced support for RLUSD, marking a significant step toward mainstream financial integration. As more banking institutions adopt the token, market capitalization growth toward $1 billion becomes increasingly viable.

Technical Patterns Signal Potential $4 Breakout

Chart analysis reveals a falling wedge pattern forming around XRP’s price action. This technical formation indicates a potential trend reversal from bearish to bullish momentum. XRP currently approaches the upper trendline of this pattern, suggesting a possible breakout.

A decisive close above the resistance level, followed by a successful retest as support, would confirm the pattern’s validity. The height of the falling wedge projects a potential 70% rally, pushing XRP toward the $4 target.

Supporting technical indicators reinforce the bullish outlook. The Chaikin Money Flow (CMF) indicator shows upward movement, confirming strong buying pressure and bull control. The MACD indicator has crossed into positive territory, further supporting the case for continued price appreciation.

Historical data demonstrates a correlation between RLUSD developments and XRP price movements. Positive news surrounding the stablecoin typically generates upward momentum for the native token. This relationship suggests that RLUSD’s continued growth could be a primary catalyst for XRP’s next major price move.

The convergence of regulatory clarity, institutional adoption, and technical breakout patterns creates a favorable environment for XRP’s advance toward $4. Market participants will monitor whether the token can maintain momentum above key resistance levels and complete the projected pattern.