The XRP price has formed two distinct chart patterns, signaling a potential short squeeze in July.
Ripple (XRP) token was trading at $2.30 on Tuesday, June 8, up by over 20% above its lowest level in June.
XRP has several fundamentals that may drive its price higher in July. First, its ecosystem is performing well, with tokens like Coreum and Sologenic posting double-digit gains this week. Additionally, the total value locked on the XRP Ledger has risen to $62 million, while the newly launched XRP Ledger EVM has reached $52,000.
Second, there are signs that Bitcoin (BTC) may finally break above its all-time high this month.
Polymarket odds of a strong Bitcoin breakout have continued to rise, as the token has formed both a cup-and-handle and a bullish flag pattern. A breakout in BTC would likely spark gains across the crypto market, including XRP.
Third, Ripple USD is on track to hit the $500 million market cap milestone this month. It has already surpassed the $485 million mark, and the passage and signing of the GENIUS Act could further accelerate its growth, as Tether (USDT) is not compliant. As such, USDT holders in the US will likely be transitioned to other compliant tokens, such as USDC, PYUSD, and RLUSD.
The probability that the SEC will approve multiple XRP ETFs later this year remains high at 85%. These funds could become highly successful, as demonstrated by the recent launches of Bitcoin and Ethereum ETFs.
Additionally, the XRP price may rebound ahead of Brad Garlinghouse’s scheduled testimony before Congress on July 9.
XRP price technical analysis
Technical indicators suggest that an XRP short squeeze could be imminent for two reasons. The token has formed an inverse head-and-shoulders pattern, a widely followed bullish reversal signal.
XRP has also developed a symmetrical triangle, with its trendlines converging near a breakout point. This triangle is part of an eight-month bullish pennant pattern that began following its short squeeze in November of last year.
A breakout from this structure could lift XRP toward last year’s high of $3.39, an increase of 48% from current levels. A drop below the support at $1.9130 would invalidate the bullish setup.
