XRP is showing signs of a major breakout, rallying over 12% after Ripple named BNY Mellon as the official custodian for its RLUSD stablecoin. This move is seen as a significant boost to XRP’s institutional credibility and potential network utility.
Ripple-BNY Mellon Deal Strengthens XRP Utility
On July 1, Ripple announced a strategic partnership with BNY Mellon, one of the world’s largest and oldest banks, to custody Ripple’s RLUSD stablecoin. RLUSD is currently live on both Ethereum and the XRP Ledger (XRPL), but according to on-chain data, over 87% of RLUSD transactions are still happening on Ethereum.
Despite this, Ripple has made it clear that its long-term vision involves shifting RLUSD usage to the XRPL, a move that could bring faster, cheaper, and more scalable stablecoin transactions. Analysts believe this shift would naturally increase demand for XRP, which serves as the native asset powering the XRPL.
“Ripple is a long-term player,” noted market watchers, pointing to Ripple’s efforts to integrate smart contracts on XRPL, making it more competitive with Ethereum’s DeFi infrastructure.
XRP Price Breakout Supported by Bullish Chart Patterns
Technically, XRP has confirmed a breakout from a key inverse head-and-shoulders formation, with the neckline previously acting as resistance at $2.30. With the breakout, the level is now seen as support, and the pattern’s target points to $2.87, a roughly 20% upside from current levels.
On the broader time frame, a 3-day chart also shows XRP emerging from a descending triangle, which analysts believe may act as a bullish continuation pattern. If confirmed, the breakout could take XRP up to $3.72 by August, representing a 55% gain from current prices.
“XRP finally breaking out,” one trader posted, as technical signals align with institutional developments.
What to Watch Next
While momentum is building, XRP must hold above the $2.30 neckline to confirm the breakout. A drop back below this level could delay the move toward $2.87 or even invalidate the setup.
Should bullish momentum persist and adoption of RLUSD shift meaningfully to the XRP Ledger, XRP could continue climbing toward the $3.72 resistance zone, a price not seen since the last major cycle.
Summary
- XRP surged 12% after Ripple appointed BNY Mellon as RLUSD custodian.
- Bullish chart patterns point to possible gains toward $2.87 and $3.72.
- Traders see potential in XRP gaining utility from RLUSD’s shift to XRPL.
- Holding above $2.30 support is crucial for continued upside.
With strong technical confirmation and renewed institutional backing, XRP could be entering a new phase of momentum—driven not by hype, but by fundamental utility and real-world integration.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.