XRP price can rally and hit $5 in July: 4 reasons why

XRP price bounced back and crossed an important resistance level this month, with technical and fundamental indicators pointing to further gains, potentially up to $5.

Ripple (XRP) jumped to a high of $3.05, its highest point since February, and up by 81% from its lowest point in June. Here are the top reasons why the coin may jump to $5 and beyond this month.

XRP futures open interest and funding rate

There are signs that XRP demand in both spot and futures markets is on a strong upward trajectory. CoinGlass data shows that futures open interest jumped to a record high of $8.3 billion this week—a significant rise from under $1 billion just a few months ago.

XRP futures open interest | Source: CoinGlass

The weighted funding rate has remained positive since June 28 and has reached its highest point in over a week. A rising funding rate is typically a sign that traders expect the coin’s future price to be higher than it is today.

XXRP ETF inflows are soaring

Meanwhile, the Teucrium 2x Long Daily XRP ETF, which offers leveraged exposure to the token, has continued to grow. Its assets have risen to over $285 million in under three months, an impressive figure for a fund with a 1.89% expense ratio.

This trend suggests that more mainstream XRP ETFs, such as those proposed by Bitwise and Franklin Templeton, could attract inflows from Wall Street investors. The odds of these ETFs being approved by the Securities and Exchange Commission have jumped to nearly 90%, according to Polymarket.

XRP Ledger ecosystem growth

Ripple Labs is also working to expand the XRP Ledger ecosystem. Recently, the company partnered with Ctrl Alt and the Dubai Land Department to provide scalable and secure storage for tokenized real estate title deeds. This follows Ripple’s receipt of a license to operate in the UAE.

Ripple has partnered with companies like Bank of New York Mellon, AMINA Bank, and OpenPayd, among others. At the same time, the Ripple USD (RLUSD) market cap has jumped to over $517 million, a trend that may accelerate after the GENIUS Act passes.

XRP price has strong technicals

XRP price chart | Source: crypto.news

The daily chart shows that XRP has broken above the upper boundary of a symmetrical triangle that formed over the past seven months. This pattern is part of a bullish pennant, a classic continuation signal.

XRP remains above the 50-day and 200-day Exponential Moving Averages, indicating that bulls remain in control. The next major level to watch is the all-time high of $3.3815. A breakout above this level could pave the way for gains toward the psychological resistance at $5.