- XRP is testing the key $3.30 resistance after rebounding from $3.00 support.
- Low trading volumes raise caution, as sustained gains will require stronger institutional buying.
- Bullish sentiment is fueled by Ripple’s global payment partnerships, ETF speculation, and a recent SEC legal win.
Ripple’s XRP is once again in the spotlight after climbing to $3.27 at the time of writing, testing the descending trendline that has acted as a ceiling since late July’s rally to $3.50. The move puts the cryptocurrency within range of a potential breakout above the $3.30 mark, a level that could set the stage for renewed bullish momentum.
The current market structure shows a textbook descending trendline forming over the past three weeks, following XRP’s retreat from its July peak. A swift rebound from the $3.00 support zone over the past few sessions has now brought the token back into striking distance of that resistance level.
Technical Indicators Point to a Make-or-Break Moment
A decisive daily close above $3.30 would signal the start of a new uptrend, with potential targets at $3.50 and $3.70. However, analysts caution that XRP’s recent price gains have not been matched by rising trading volumes, a critical factor in confirming the strength of any breakout.
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Historically, breakouts without solid volume backing tend to result in short-lived rallies. In this case, traders will be watching whether institutional interest or large-scale buying emerges to sustain the move.
XRP chart | Source: Tradingview
Moving Averages Provide a Safety Net for Bulls
Despite the muted volume, XRP’s technical outlook remains constructive. The 20-day Exponential Moving Average (EMA) at $3.07 has acted as a reliable short-term support level during recent pullbacks, while the 50-day EMA at $2.81 offers a stronger safety net for longer-term bullish sentiment.
If the trendline is breached, maintaining price action above $3.30 in the following sessions will be critical to validating the breakout. Failure to do so could see XRP retrace toward $3.07 or even test the $2.81 support before attempting another rally.
Broader Market Context and Institutional Factors
The price action comes amid growing optimism in the XRP market, fueled by Ripple’s expanding global partnerships in cross-border payments and ongoing speculation about a potential spot XRP exchange-traded fund (ETF) in the U.S. These developments, alongside the recent resolution of Ripple’s legal battle with the SEC, have strengthened investor confidence.
36crypto previously reported that open interest in XRP futures has surged significantly since the start of August, suggesting traders are positioning for volatility. Meanwhile, funding rates remain positive, signaling a bias toward long positions.
What’s Next for XRP?
In the immediate term, all eyes are on the $3.30 resistance level. A breakout backed by strong buying activity could quickly push XRP toward the $3.50 region, with a secondary target near $3.70 if momentum holds. Conversely, rejection at the trendline could trigger another round of consolidation, with key supports at $3.07 and $2.81.
Market watchers note that the next 48 hours could be pivotal. If bulls step in with higher conviction, XRP could be on the verge of its next major rally.
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