Ripple (XRP) price prediction: falling wedge breakout suggests rebound, will the next step reach 3 dollars?

Ripple (XRP) is once again in the spotlight of bullish traders, with previous reports indicating that Ripple is applying for a banking license, which could drive the price of XRP to pump while promoting the adoption of RLUSD stablecoin. This development also raises the question: Can XRP really rebound 32% again, reaching $3?

In the past 24 hours, the price of Ripple has risen from a low of 2.17 USD to a fluctuating high of 2.27 USD. At the same time, market interest in Ripple has significantly increased, as data from CoinMarketCap shows that the trading volume of Ripple has increased by 35% during the same period, reaching 3.99 billion USD.

The price of XRP may continue to pump, as cryptocurrency media reports that Ripple is applying for a national bank license, which could pave the way for the mainstream application of its RLUSD stablecoin.

Ripple CEO Brad Garlinghouse stated that this application also gives RLUSD an advantage in the $250 billion stablecoin market.

If Ripple is really approved, the price of XRP is likely to experience a bullish market, with trends that may mirror the pump from last December to this January, when the price of altcoins once approached 3.40 USD. Furthermore, the technical structure also indicates that this trend may be brewing.

Speculative traders open long positions on XRP

Ripple is seeking regulatory transparency after recently applying for a banking license, which has increased futures traders' interest in the altcoin.

CoinGlass data shows that the open contracts for Ripple have grown by 8% in the last 24 hours, reaching 4.62 billion USD, setting a new high in over a month.

The increase in open interest is because those traders building long positions believe that the price of XRP will pump, as the long-to-short ratio has returned to a neutral level of 1. Moreover, as of the time of this writing, all positions built by Hyperliquid whales on July 3rd are bullish.

Therefore, as futures traders bet that the price of XRP will soar after breaking out of the descending wedge pattern, it is possible to reach a target price of 3 USD. Considering that Ripple is working hard to gain regulatory approval to enter the banking business, the possibility of this rebound is even greater.

Falling wedge breakout suggests rebound

According to CoinGape's analysis, after the bank license application, the price of XRP surged by about 4%, and it seems to be ready to rise again by 78%. This trend follows the formation of a descending wedge pattern, which typically indicates that the trend is about to shift from bearish to bullish.

This week's K-line chart has moved to the upper resistance trend line, but a strong close above that trend line is still needed. To confirm the strength of the bullish trend after this breakout, the price may retrace to test that support level. If that support level holds, the price of Ripple may rise to 3.96 USD.

The RSI indicator is actively defending the 50 mean, with Ripple fluctuating above this indicator, indicating that despite facing weakness, the momentum remains bullish. If the indicator continues to rise and forms higher highs, it will confirm a breakout of the trend line resistance level, paving the way for an XRP price rebound to $3.96.

In addition, a recent CoinGape analysis supports the bullish narrative regarding the XRP price prediction, noting that the increasing likelihood of XRP ETF approval could drive the XRP price to reach 3 USD.

(Source: Trading View)