XRP Price Eyes $4 as RLUSD Nears $1B Market Cap After 800% YoY Growth

XRP has gained by around 9.6% year-to-date, as it trades at $2.27 today, July 7. During the same period, the RLUSD stablecoin has recorded a massive increase of more than 815% in its market capitalization. Following this growth, RLUSD has not only outperformed Tether’s USDT, but it is also on a trajectory to a $1 billion market cap. If this happens, would XRP reach $4 as suggested by a falling wedge pattern? Let’s explore.

RLUSD Aims for $1B Market Cap After 800% Growth

The market cap of RLUSD has increased from $53 million at the beginning of the year to $485 million at press time. This means that this new stablecoin has grown eightfold in just six months, making it one of the fastest-growing projects in the crypto industry.

Compared to the leading stablecoin USDT, RLUSD’s growth has been iconic, considering that the former has only seen a 15% market cap increase. At the same time, the market cap of USDC has grown by only 44% per CoinMarketCap data.

One of the top reasons why RLUSD may reach $1 billion and increase the chances of an XRP price rally is a shifting regulatory framework. As CoinGape reported, US legislators have labeled next week as “Crypto Week,” where they will debate several crypto-focused bills, including the GENIUS Act. If it passes, US-made stablecoins like RLUSD will have an edge over rivals like USDT.

Secondly, Ripple has filed for a banking license, which will also make it easier for institutions to adopt the RLUSD stablecoin. If regulators grant their approval for this license, it will not only cause an XRP price rally but also contribute to increasing the stablecoin’s market cap.

Lastly, RLUSD is finding its way into the traditional banking system after a recent report revealed that Swiss-based bank AMINA will enable support for RLUSD. As more banks tap into this token, it will become more likely for it to reach a $1 billion market capitalization.

Will RLUSD’s Growth Push XRP Price to $4?

The RLUSD stablecoin may be the trigger that pushes the XRP price to $4. This is because history shows that whenever there are bullish developments around the stablecoin, the price of the Ripple token also surges. Besides, a giant falling wedge pattern has appeared, making it more likely that this target could be attained.

The falling wedge usually indicates a potential reversal of the existing trend from a bearish one to a bullish one, and currently, XRP is teasing to break out from the upper trendline.

In order to fully break out and end months of trading in consolidation, the price will have to make a decisive close above this resistance and come back later to retest it as a support level. If it holds, the height of this falling wedge suggests that the XRP price might be headed for a 70% rally to near $4.

Meanwhile, the CMF indicator that is on its upward move is confirming that bulls are in control of how the XRP token performs in the future. As it rises, the CMF is confirming that the buying pressure is strong, and this might contribute to a significant increase in the price.

The MACD indicator is also leaning towards the bullish side after it crossed into the positive region, and this is also indicative of a potential rally in the future. As it continues to rise, the XRP price may cross $4.

Therefore, as the RLUSD stablecoin gains prominence and achieves adoption, it is possible that the XRP price achieves a notable rally in the future that may push it towards the $4 all-time high. This rally becomes even more likely to happen considering the appearance of a falling wedge pattern.