Breakout Drivers
XRP broke above the $2.75 resistance level on Aug 23, rising to $2.98 before retracing to the $2.85 area. The surge was fueled by dovish Fed commentary at Jackson Hole and growing optimism around new on-chain institutional flows, particularly via tokenized treasury vehicles and repurchase agreements.
Volume and Liquidity
Trading volume on centralized exchanges quintupled, while on-chain transfer volumes for XRP rose 270 percent. Spot exchange inflows of XRP increased by 150 percent, indicating robust buying pressure. Stablecoin pairs accounted for 68 percent of trade volume, underscoring the role of dollar-pegged tokens in fueling rallies.
Technical Indicators
The Relative Strength Index (RSI) hit 78 at the peak, signaling overbought conditions. The 20-day moving average on the daily chart served as immediate support at $2.65. A descending channel breakout pattern suggests potential retest of the $3.10 psychological level, with a stop-loss advised at $2.70 to manage downside risk.
Macro Correlations
XRP’s performance closely tracked Bitcoin’s post-speech bounce, with a 60 percent correlation over the past week. Macro liquidity indicators, including the ICE BofA MOVE index, show declining volatility expectations, supporting risk-asset inflows. Institutional demand metrics from Glassnode show a 12 percent week-on-week increase in exchange-wallet balances.
Outlook
Analysts project a consolidation between $2.70–$2.95 ahead of key data points, including the U.S. core PCE inflation report. A sustained move above $3.00 could trigger short-squeeze dynamics and attract momentum traders. However, regulatory uncertainties around token classification remain a potential headwind.
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