On May 26, 2025, the XRP/US Dollar pair formed a bullish flag pattern on the 4-hour chart.
A bullish flag pattern appears when a sharp price rally is followed by a downward-sloping consolidation, typically between two parallel lines. It often signals that the price may continue rising once the pattern confirms.
If the breakout is confirmed, XRP could rally approximately 29% from the current price of $2.34 to the projected target of $3.01.
Currently, XRP trades just below the 50-period Exponential Moving Average (EMA), which stands at $2.36. This EMA now acts as dynamic resistance. A breakout above both the EMA and the upper red trendline may trigger the expected continuation.
Meanwhile, the Relative Strength Index (RSI), a momentum indicator, sits at 49.13, just below the neutral 50 mark. The RSI line curves upward, signaling improving momentum. If RSI climbs above 50 with strong volume, it would support the bullish flag confirmation.
Trading volume remains moderate at 305.34K, with no significant spikes yet. However, any increase in volume during a breakout could validate the move toward $3.01.
In short, XRP is consolidating within a bullish flag. If it breaks above the resistance and EMA with strong volume, a 29% rally toward $3.01 may follow.
XRP-Bitcoin Correlation Drops to 0.4, Raising Short-Term Pressure Risks
On May 26, 2025, the correlation coefficient between XRP and Bitcoin dropped to 0.40, reaching its lowest level since February 2025. A correlation coefficient measures the degree to which two assets move in relation to each other, where 1 indicates perfect correlation and 0 indicates no correlation.
A 0.4 reading shows that XRP is becoming increasingly disconnected from Bitcoin’s price action. Historically, this kind of divergence has had negative consequences. For example, the last time the correlation dropped to this level, XRP’s price fell by 22.33%, as shown in the highlighted green zone on the chart.
This decoupling comes at a time when Bitcoin has hit a new all-time high. Typically, altcoins like XRP benefit from Bitcoin’s strength. However, the current divergence suggests XRP may not ride Bitcoin’s upward momentum. This weakening link could indicate reduced investor confidence or shifting capital to other altcoins.
Despite this, on-chain data points to growing investor conviction. The supply of XRP that has remained unmoved for 3–6 months has increased steadily in May. This signals that short-term holders are maturing into mid-term holders, suggesting a more stable and less speculative investor base.
So while technical correlation weakens and near-term price risk increases, holding behavior implies a longer-term confidence among XRP investors.
Dormant XRP Supply Hits 12.3 Billion, Signals Rising Long-Term Confidence
From mid-March to late May 2025, the total supply of XRP last active 3 to 6 months ago climbed steadily from 8 billion to 12.3 billion tokens, according to Glassnode data.
This metric tracks coins that have not moved for three to six months, and its increase suggests that more holders are choosing not to sell. These investors are either waiting for a better exit price or signaling long-term confidence in XRP’s outlook.
While XRP’s price (black line) showed moderate volatility during this period, the green line representing dormant supply moved consistently upward. This divergence suggests that the recent sideways or slightly bearish price action has not shaken holders with mid-term conviction.
This kind of behavior often reflects a maturing investor base. When supply remains untouched for months, it reduces short-term circulating supply, potentially limiting sharp selloffs during volatile periods.
Analyst Links XRP Growth to Ripple-Circle Acquisition Rumors
Kate Young Ju, a secondary X account associated with Ki Young Ju—the founder of on-chain analytics platform CryptoQuant—shared new commentary on XRP and Ripple’s potential acquisition plans.
“XRP seems like a group of capital market experts. It has its shortcomings, but its movement is unquestionably sharp,”
the pseudonymous account stated.
In the same post, the analyst addressed growing speculation that Ripple may acquire Circle, the issuer of the USDC stablecoin. Circle has reportedly begun “informal talks” with both Ripple and Coinbase to explore a potential acquisition. The company is seeking a valuation of at least $5 billion, consistent with its target for an initial public offering (IPO).
According to Ju, a Ripple–Circle deal would mark a strategic shift. He noted that strong demand for stablecoins across both crypto and traditional markets could bring institutional attention to XRP. The analyst added that investors preparing for Circle’s IPO might instead turn to XRP as a proxy bet on the stablecoin market’s growth.
“If Ripple acquires Circle, investors waiting for Circle’s IPO may choose XRP instead,”
he wrote.
MiCA-Regulated Euro Stablecoin EURØP Launches on XRP Ledger
Moreover, Rippleannounced that Schuman Financial’s euro-backed stablecoin, EURØP, has officially launched on the XRP Ledger (XRPL), marking the first full integration of a MiCA-compliant euro stablecoin into the network.
The stablecoin is fully backed by euros, redeemable, and regularly audited by KPMG. Its reserves are held at major financial institutions, including Société Générale, and its issuer is regulated by France’s ACPR (Prudential Supervision and Resolution Authority). This aligns EURØP with the European Union’s Markets in Crypto-Assets (MiCA) framework.
Ripple emphasized that the launch represents a major step toward expanding compliant, euro-denominated stablecoin use on one of the world’s most active blockchain networks. According to the company:
“This marks a major step toward bringing compliant euro-denominated stablecoins into active use on one of the world’s most widely used blockchains.”
Over the past decade, the XRP Ledger has processed more than 3.3 billion transactions, supported over six million active wallets, and maintained a decentralized network of more than 200 validators. Ripple described the ledger as “institution-ready”, making it well-suited for the integration of stablecoins like EURØP.
Cassie Craddock, Ripple’s managing director for the UK and Europe, highlighted the broader utility:
“The launch of EURØP on the XRP Ledger demonstrates how stablecoins can meet the high standards set by MiCA while unlocking new possibilities for onchain use cases such as payments and real-world asset tokenization.”
Meanwhile, Ripple also revealed that Braza Group is expanding digital currency adoption in Latin America. The firm has launched its USDB stablecoin on the XRP Ledger. USDB is pegged to the U.S. dollar and backed by a mix of U.S. and Brazilian government bonds. This further shows how the XRPL is becoming a hub for compliant and scalable stablecoin solutions.
Together, EURØP and USDB strengthen the XRP Ledger’s position in global markets by enabling institutional-grade settlement, decentralized finance (DeFi) access, and real-world asset tokenization, all under regulatory clarity.
