Key Insights

• XRP has formed a large bullish flag pattern on the daily chart.
• The Ripple USD (RLUSD) stablecoin has continued gaining momentum.
• Spot XRP ETFs have added substantial assets in recent days.

XRP rose sharply today, climbing to its highest level since August 25. The token jumped to $1.4797, up nearly 50% from its lowest point this month. The rally may have further room to run, as the chart shows a bullish flag pattern forming while momentum behind Ripple USD (RLUSD) continues to build.

XRP Price Prediction: Technicals Suggest Further Gains Are Possible

On the daily chart, XRP has performed well over the past few months, rising from an August low of $0.9872 to the current level of $1.4515.

A closer look at the chart reveals that the token has formed a golden cross pattern, which occurs when the 50-day and 200-day Weighted Moving Averages (WMAs) cross. The token has also remained above the Supertrend indicator, a sign that bulls remain in control for now.

Most importantly, XRP has formed a bullish flag, a popular continuation pattern. This structure typically appears after an asset makes a sharp move, followed by a descending channel, closely resembling a hoisted flag. Based on this setup, the token is positioned for a potentially strong bullish breakout. The next key target to watch is $1.6975, its highest level in August. A break above that level would point to further gains, potentially toward $2.

Ripple USD Growth Is Gaining Steam

One of the main potential catalysts driving XRP higher is the strong growth across its ecosystem this year. A key metric is the accelerating expansion of Ripple USD (RLUSD), the stablecoin issued on the XRP Ledger (DeFiLlama data). Stablecoins — digital tokens pegged to fiat currencies such as the US dollar — have become central to crypto trading and payments, and RLUSD's expansion matters to XRP holders because activity on the XRP Ledger has historically been tied to demand for the ledger's native asset.

The RLUSD market cap has climbed to $2.4 billion, a substantial increase from the $1.3 billion where it began the year, making it one of the best-performing stablecoins in the crypto industry. By contrast, PayPal's PYUSD has declined from over $4 billion to $3 billion, with its usage also falling. RLUSD still remains far smaller than market leaders Tether (USDT) and Circle's USDC, whose combined market caps exceed $250 billion, leaving substantial room for growth if current momentum holds.

Artemis data show that daily RLUSD transfer volume has continued rising, reaching its highest level in weeks. Its 24-hour volume increased by nearly 3% to more than $258 million.

Notably, RLUSD's market cap is growing on the XRP Ledger itself. The amount held on the XRP Ledger has risen above $1.03 billion, while on Ethereum it has soared past $1.36 billion.

XRP ETF Inflows Are Rising

Meanwhile, American investors have continued accumulating XRP ETFs, indicating expectations of continued growth. Spot XRP ETFs began trading in the United States earlier this year after the SEC approved a wave of applications, opening regulated exchange-traded exposure to the token for the first time. Data show that these funds added more than $18.9 million so far this month.

The funds added over $159 million in assets last month and have recorded inflows for six consecutive months — a sign that demand has kept rising as investors continue accumulating the coin.

In total, these funds have attracted over $1.6 billion since their inception and now hold more than $1.5 billion in assets. This growth likely explains why the amount of XRP in circulation has continued to fall over the past few months.

Similar growth is occurring across most major crypto assets, including Bitcoin, Ethereum, and Solana. Spot Bitcoin ETFs have added $595 million so far this month after taking in $3.52 billion last month. Ethereum ETFs have attracted $104 million this month after adding $1.85 billion last month.

The inflow surge has occurred amid rising concerns in the bond market, where yields have climbed in the US and other markets. US and European bond yields have risen sharply on debt concerns, prompting more investors to seek alternative assets.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.