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XRP crossed the $3 mark for the first time since 2018, briefly reaching $3.03 before closing at $3.00 during the 24-hour window from August 3 to August 4. The change occurred as investors lost their interest in Bitcoin and Ethereum and sought alternative cryptocurrencies. XRP did outperform both assets, with Bitcoin going up only 0.5% and Ethereum rising by 2.5%.
Strong momentum and increased institutional flows enabled XRP to overcome several key resistance areas. Following breakouts at $2.87, $2.92, and $2.97, there was a volume spike of over 110 million. This spike coincided with an increase in South Korean trading activity. With a 24-hour volume of almost $500 million, the token rose to become the most traded token on Upbit.
The token's recent gains also caused leveraged liquidations. As XRP hit $3.06, analysts noticed that short sellers were exiting their positions, which made traders more bullish on its price. Furthermore, open interest in XRP-linked derivatives exceeded $7.3 billion, indicating that speculative activity increased alongside spot market demand.
ETF inflows also played a role. Bitcoin and Ethereum ETF outflows totaled more than $1 billion, but XRP-linked funds continued to gain capital. According to market data, XRP ranked second behind Ethereum in altcoin ETF inflows during the same period.
However, the rally faced resistance at $3.03. Profit-taking occurred near this level, causing a slight intraday correction. Analysts now see $2.92 and $2.97 as short-term downside support, while a break above $3.14 could open the door to the $3.48 - $3.65 range.
Analyst EGRAG Crypto set three different long-term targets for XRP. On a linear chart, the projection stands at $4.89. A logarithmic view pushes the ceiling to $48.90, with a median forecast of $27 if the token holds above the $3 support level. These projections remain speculative but are based on XRP’s 6-month trend structure.
Javon Marks also issued a target of $4.80, provided the price remains above the $2.47 support area. Both analysts suggest that XRP’s upward movement depends on maintaining support zones during consolidation phases.
On-chain analyst Ali Martinez highlighted a contrasting view. He highlighted a bearish signal in the MVRV ratio, which recently flashed a death cross. This technical setup suggests a possible correction.
Martinez identified $2.48 as a critical support level should selling pressure increase. RSI and MACD indicators have also started to show signs of weakening momentum.
Macroeconomic considerations continue to influence market conditions. New US trade tariffs and late interest rate adjustments have made traders more cautious. Despite this, strategic buying resumed before US markets opened, indicating that some investors remain focused on short-term gains.
Meanwhile, a settlement in Ripple's ongoing legal dispute with the SEC might be imminent. According to reports, Ripple has dropped its appeal and accepted a $125 million settlement; the SEC is reportedly expected to do the same. In addition to eliminating legal ambiguity, a settlement might promote more institutional adoption.
