XRP (XRP) has risen 6.2% in the past week as market sentiment has significantly improved

This is another important step for the blockchain company to promote the adoption of its stablecoin to achieve its mission

XRP price has risen 6.2% in the past week as market sentiment has significantly improved in a relatively short time and has pushed the price of this token to $2.30 for the first time in about a month.

The Fear and Greed Index has recovered from a record low of 15 recorded a few weeks ago to a level of 52 as of this morning, indicating that market participants are now less concerned about the state of the market.

This supports the bullish outlook for cryptocurrencies including XRP and has translated into several bullish breakouts on key moving averages.

Just a few days ago, Ripple announced that investors and traders can now borrow Ripple USD (RLUSD) – the new stablecoin of the project – through the popular AAVE protocol.

This is another important step for the blockchain company to promote the adoption of its stablecoin to achieve its mission of becoming the leading decentralized payment platform.

Data from CoinMarketCap shows that the market capitalization of RLUSD has risen from around $60 million at the beginning of March to nearly $300 million at the time of writing, resulting in a 400% increase in just two months.

Higher demand for RLUSD means higher trading volume in the Ripple network and increased demand for XRP – the blockchain utility token.

XRP price analysis: Next levels to watch

In the meantime, the recent price action of XRP indicates that the latest Elliott wave has completed.

XRP could continue to rise to $2.50 in this scenario.

The hourly chart shows that prices have entered a consolidation phase while waiting for additional liquidity to trigger the next move.

Several scenarios arise when using the latest Elliott wave levels as a reference to identify key resistance and support areas to observe.

The bullish scenario would see prices exceed the fifth wave, at $2.2350, and trigger the start of a new Elliott wave that could push XRP to $2.50 in the near term. A brief pullback to $2.23 is to be expected after this bullish breakout.

As long as that support level holds, this bullish scenario will remain intact. After the first breakout, prices may retrace to the resistance level of $2.30 (currently acting as support) and then aim for the $2.40 - $2.50 level as the first viable target.

However, the bearish scenario would see XRP drop below the support level of $2.12 and fall to around $2.03 - $2.06 in the near term.

The current market structure is bullish as prices are trending upwards. Therefore, the bullish scenario has higher odds for both cases.

Momentum indicators have cooled off in recent hours as the market enters a consolidation phase, with the upcoming U.S. trading session likely to provide the necessary liquidity for a breakout — in either direction.