Key Points
- XRP’s price has just rallied by around 11% after Ripple’s legal victory against the SEC.
- $3.15 has emerged as one of the most important support zones, with $3.24-$3.27 acting as near-term resistance.
- Analysts believe that XRP could be in for a breakout toward $3.8, with medium-term targets up to $5.
The price of XRP has gained some traction after rebounding from the $3.15 support zone. This price performance came after the dismissal of the U.S. Securities and Exchange Commission’s case against Ripple Labs.
As of August 11, XRP has risen 11% in 24 hours and moved from around $2.90 to a peak of $3.27 before closing near $3.22.
This rally has been fueled by a rise in institutional trading volumes, which climbed 208% to $12.40 billion. So how high up can XRP go from here?
XRP Holds Strong as Institutional Demand Rises
Institutional traders have become one of the biggest driving forces behind XRP’s latest rally. Open interest in XRP derivatives rose by around 15% to $5.90 billion, in a show of aggressive positioning from big market players.
During early trading in particular, XRP briefly dropped from around $3.24 to $3.16 on heavy volume, and buyers quickly stepped in to defend the $3.15-$3.16 zone.
This rebound caused a push on XRP that helped it to break the $3.22 resistance and hold above $3.24 into the close.
So far, analysts are now viewing $3.15 as a short-term support level. In essence, as long as this price floor holds, the trend bias is likely to remain bullish.
Technical Setup Shows Incoming Upside
As of writing, XRP has reclaimed its position above a major ascending trendline. This shows that the recent price structure is intact. It further shows that XRP has enough fuel to continue upwards.
This said, if XRP breaks above $3.4, analysts expect the cryptocurrency to see a 20% move toward $3.8.
This level stands as the next major resistance zone, where price action could face some more selling pressure.
So far, the end of Ripple’s legal battle has improved investor confidence in XRP as an asset.
Corporate treasuries and institutional desks are reallocating funds into the cryptocurrency, and are creating the perfect conditions for a continued march upwards.
Bulls Eye $3.8 and Beyond
According to crypto analyst Lingrid , XRP is well-set or a move toward $3.8. So far, the major buy zone is between $3.1 and $3.2 with $3.4 acting as the breakout trigger. If confirmed, this could open the path for further gains with the asset.
Some institutional research desks are setting even higher medium-term targets.
Price predictions in the $4.50 to $5.00 range are being discussed as of writing, and if bullish strength continues, XRP could be in for a rally to new highs.
On the other hand, however, Whale Alert recently pointed to a wave os institutional selling, where a single wallet moved 16,698,207 XRP worth 53 million to Coinbase.
Risks to the Bullish Outlook
Despite XRP going strong, traders are warning of several risks on the downside. In particular, a drop below $3.00 would invalidate the bullish setup and hand control back to sellers.
The weaker market sentiment could also limit moves to the upside, especially near the $3.8 resistance.
If a rejection occurs at $3.8, it could trigger profit-taking and a pullback toward the $3.15 support zone.
In all, according to insights from analyst Ali Martinez, XRP’s recent breakout from a bullish flag on the weekly chart has now opened the doors to a possible price surge towards $11.
Analysts are watching out for whether XRP can keep itself afloat above the $3.27 price level. A confirmed breakout could lead to a quick rally toward $3.50 and even $3.8.
