XRP surged towards the $3 level in the last trading session, with trading volumes increasing over 6% compared to its weekly average.
News Background
• The increase in XRP coincides with a general stabilization in the cryptocurrency market, where altcoins are experiencing modest inflows following last week’s downturn.
• On-chain analytics indicated significant institutional movements, with approximately 155 million XRP transacted during recovery phases, significantly above the daily average of 63 million.
• Market discussions initially proposed that XRP was approaching new highs, although the actual all-time peak remains $3.84 from January 2018, highlighting that this is more of a recovery test than a price discovery phase.
Price Action Summary
• XRP experienced a fluctuation of 5.1% between the levels of $2.84 and $2.99 during the 23-hour period from Aug. 20 13:00 to Aug. 21 12:00.
• The most pronounced movement occurred around 19:00 UTC on Aug. 20, when the asset jumped from $2.84 to $2.99 with a volume of 80.6 million.
• Following sessions showed some stabilization, with consistent rebounds within the $2.89–$2.93 range, verifying it as a temporary support level.
• A sharp price movement in the last hour (Aug. 21 11:03–12:02) observed an 8.6% variation: fluctuating from $2.916 to $2.901 on 960,000 units, before settling down.
Technical Analysis
• Support: The $2.89–$2.93 area has demonstrated repeated strong bounces with above-average volume participation.
• Resistance: The psychological barrier at $2.99–$3.00 is limiting upward momentum, with multiple rejections noted.
• Volume: 80.65 million during the uptrend compared to a 24-hour average of approximately 63 million.
• Pattern: The market is experiencing sideways consolidation following a bullish push, with momentum slightly declining.
What Traders Are Watching
• The key focus is on whether the $2.93 support will hold in the near term or give way for a retest of $2.82.
• A breakout above $3.00 may act as a catalyst for a continuation of the upward trend.
• The sustainability of volume is crucial—if flows decrease, the bullish momentum may weaken.
