XRP Price Eyeing Major Breakout Amid Trump-Led Crypto Euphoria

XRP (XRP) looks poised to undergo a decisive breakout move due to the formation of a classic bullish continuation pattern and strong market fundamentals following Donald Trump’s pro-crypto speech at the Nashville Bitcoin Conference 2024.

XRP Price Prediction: Bull Pennant Promises ~20% Gains by August

As of July 28, XRP was painting a bull pennant, characterized by its consolidation inside a triangle-shaped pattern alongside declining volumes.

Bull pennants are considered bullish continuation patterns by traditional analysts. They resolve when the price breaks above their upper trendline and rises by as much as the height of the previous uptrend, called a flagpole.

XRP is nearing a breakout as it approaches the pennant’s apex, where the two trendlines meet. Simultaneously, the cryptocurrency is holding strong above its 0.618 Fibonacci retracement line, which increases its potential to undergo a breakout in the coming days.

Should it happen, XRP’s bull pennant upside target for August would be around $0.724, up about 20% from the current price levels. Nonetheless, any breakout move must accompany a rise in trading volume, or the market would risk a correction, also called a bull trap scenario.

Trump Speech, Rate Cuts Further Boosting XRP’s Bullish Outlook

More upside cues for XRP markets come from Donald Trump’s latest pro-crypto speech and an increasing outlook for interest rate cuts in the United States.

“This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world, and we’ll get it done,” Trump said at the Bitcoin 2024 conference in Nashville on July 27.

The former U.S. president further promised to add Bitcoin to the U.S.’s strategic reserves if he wins the November presidential election, which he will contest against Democratic nominee Kamal Harris.

Meanwhile, he ensured that he’d fire Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC) known for his crypto crackdowns, one of which is against Ripple, the brains behind XRP and its blockchain, XRP Ledger (XRPL).

“We will have regulations, but from now on, the rules will be written by people who love your industry, not hate your industry,” Trump said.

Additionally, bond traders are now betting higher on a rate cut probability in September, with an 88.20% probability of a 25 basis point reduction compared to 57.9% a month ago.

Lower interest rates are typically bullish for crypto assets like XRP, which may send its price higher in the days leading up to the Federal Reserve’s September meeting.