XRP price is entering an important phase after its strong August rally, with both technical indicators and institutional activity pointing to a potentially significant next move.
XRP is currently trading around $1.37, up 1.79% over the past 24 hours. The cryptocurrency has a market capitalization of approximately $86.05 billion, while its 24-hour trading volume is about $3.60 billion. XRP currently holds a 3.28% market dominance as investors assess whether the recent rally can continue.
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XRP Price Could Retest $1.15-$1.25 Zone
A potential inverse head-and-shoulders formation has added to the bullish case. According to a recent post by crypto analyst Gopal, XRP defended the $1.00 support area strongly, while the pattern’s neckline is near $1.68. A confirmed breakout and sustained move above this resistance could signal stronger upward momentum, with the pattern projecting a possible target near $2.40.
However, the technical picture also points to the possibility of another decline before a larger move higher. The current four-hour Elliott Wave count suggests XRP may be developing an ABC corrective structure following its August advance. Under this scenario, the token could first retrace toward the $1.15-$1.25 region before beginning a larger bullish Wave 3.
XRP Could Target $3.10 After Correction
In the current wave, possible Wave B recovery levels are seen near $1.46 and $1.55, with Wave C potential targets seen around $1.25 and $1.15. Moreover, Fibonacci levels close to $1.19 and $1.13 could turn into support if selling pressures increase.
The larger bull case scenario looks much more optimistic. The chart reveals potential Wave 3 targets near $2.90 and $3.10. Before that happens, the cryptocurrency should finish the correction and reclaim its resistance levels.
Institutional Demand Supports XRP’s Longer-Term Outlook
Institutional demand has provided additional support for XRP’s recent performance. In August, US spot XRP ETFs received about $153.55 million in inflows, becoming stronger towards the end of the month.
Moreover, Ripple has been expanding its financial infrastructure. On August 3rd, Ripple made investments in ZILO and Licuido, focusing on regulated transfer-agency, asset issuance, and collateral-mobility services on the XRP ledger.
Regulation could also influence XRP’s next major move. On August 18th, the SEC proposed Regulation Crypto Assets with an aim of setting certain rules for crypto-asset investment contracts and providing a conditional safe harbor.
For the market, the key levels are still obvious. A breakout above $1.68 will confirm a bullish setup, while a movement toward $1.15-$1.25 could mean that XRP is still completing its correction before the next attempt to move higher.
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