XRP Price Alert: $5 Breakout in Sight as RLUSD Stablecoin Nears $700M Milestone

XRP has been under pressure this week, slipping into a local bear trend after falling 20% from its yearly high. But beneath the surface, bullish catalysts are building — and technical indicators suggest a potential rally toward the $5 mark.

📉 XRP Pullback Meets Growing Fundamentals

As of August 21, XRP was trading around $2.90, down from its July peak of $3.6553. Despite the decline, the token remains above key moving averages — including the 50-day and 100-day — which supports a longer-term bullish outlook.

The recent pullback appears to be part of the “handle” phase in a classic cup-and-handle pattern. With a depth of roughly 52%, the chart suggests that a breakout could push XRP above $5 — a move that aligns with historical technical projections.

💵 RLUSD Stablecoin Growth Fuels Optimism

One of the strongest tailwinds for XRP is the explosive growth of Ripple’s USD-pegged stablecoin, RLUSD. According to CoinMarketCap, RLUSD’s market cap has surged to over $666 million — up from $527 million just a month ago. That makes it the third-largest regulated stablecoin in the U.S., trailing only USDC and PayPal USD.

The recent passage of the GENIUS Act is expected to further accelerate RLUSD adoption, especially among institutions seeking compliant digital dollar alternatives.

📊 On-Chain Metrics Show Rising Adoption

Data from Artemis reveals that RLUSD is gaining traction:

• Over 413,000 transactions in the past 30 days
• Transaction volume up 53%, reaching $2.7 billion

RLUSD was notably used in the Bullish IPO, where the company opted to receive funds in stablecoins — including RLUSD — for speed and cost efficiency. Analysts expect RLUSD to play a role in the upcoming Gemini IPO, especially after Ripple Labs extended a $75 million credit line to the firm.

🔁 XRP Ledger Activity Set to Rise

As RLUSD adoption grows, it’s expected to drive more activity on the XRP Ledger — increasing transaction fees and utility for XRP itself. This symbiotic relationship between the stablecoin and the native token could be a key driver of future price action.

📈 ETF Approvals Could Be the Final Catalyst

Another major development on the horizon is the potential approval of ten XRP ETFs filed by firms like Franklin Templeton and Bitwise. If the SEC greenlights these products, institutional inflows could surge — adding fuel to XRP’s bullish momentum.