TLDR
- XRP price jumped 11% to reach $3.27 following SEC case dismissal against Ripple Labs
- Institutional trading volumes spiked 208% to $12.40 billion
- Key support established at $3.15-$3.16 with resistance at $3.24-$3.27
- Current sideways trading between $3.22-$3.30 shows declining volatility
- Elder-Ray Index indicates weakening bullish momentum
XRP has surged above $3.25 following the resolution of Ripple’s long-running legal battle with the Securities and Exchange Commission. The cryptocurrency reached highs of $3.27 before settling at $3.22, marking an 11% increase in the 24-hour period ending August 11.
The price jump comes after the SEC formally dismissed its case against Ripple Labs, removing a major regulatory hurdle that had constrained XRP’s market performance for years.
Trading volumes tell an impressive story. Institutional trading surged 208% to $12.40 billion as large investors rushed to position themselves following the regulatory clarity. This influx of institutional interest has been a primary driver behind XRP breaking through the psychological $3.00 barrier.
Open interest in XRP derivatives has also climbed 15% to $5.90 billion, showing aggressive positioning from large market participants who appear bullish on XRP’s prospects.
The trading session showed notable volatility. A sharp drop from $3.24 to $3.16 occurred during the 07:00 hour on volume of 144.54 million. Buyers defended the $3.15-$3.16 zone, which has now established itself as a key support level.
A late-session push helped XRP break through the $3.22 resistance level, holding above $3.24 into the close. The overall session range spanned $0.11, representing about 3% volatility between the $3.27 high and $3.15 low.
Current Market Dynamics
The recent price action has slowed since Friday, with XRP trending within a narrow range over the past three trading sessions. The cryptocurrency has faced resistance at $3.30 while finding support at $3.22.
This sideways movement follows a four-day rally between August 3 and 7, during which XRP surged by 20%. The current consolidation pattern indicates reduced market volatility, reflecting a relative balance between buying and selling pressure.
Market data confirms this reduced volatility. XRP’s Average True Range (ATR) has dropped by 10% since August 7, signaling calmer market conditions. While such periods of low volatility suggest market stability, they can also precede sharp breakouts in either direction.
Technical indicators provide additional insights into XRP’s potential direction. The Elder-Ray Index shows diminishing bullish strength over recent days. The green histogram bars, which represent buying momentum, have steadily decreased in size, suggesting waning bullish sentiment.
This contraction in buying momentum could create an opening for sellers to take control and potentially drive XRP’s price lower. If selling pressure increases, XRP could break below the $3.22 support level and potentially fall toward $2.99.
Future Price Scenarios
XRP faces a critical juncture. Strong selling pressure could trigger a break below support at $3.22, potentially leading to a decline toward $2.99. Conversely, if new demand emerges, XRP could push above the resistance at $3.33, potentially opening the door for a rally toward $3.66.
The resolution of the SEC case represents a significant development for Ripple and XRP c. The joint dismissal of appeals removes a long-standing regulatory uncertainty and potentially paves the way for broader corporate and institutional adoption.
Some institutional research desks have set medium-term price targets between $4.50 and $5.00, reflecting optimism about XRP’s potential following this regulatory clarity.
Traders are closely watching for follow-through buying above $3.27 to validate a breakout toward $3.50 or higher. The sustainability of large-holder accumulation after the regulatory resolution will be a key factor in XRP’s near-term performance.
The impact of derivatives positioning on spot market volatility remains another important consideration. Potential spillover from Japan’s SBI Bitcoin-XRP ETF filing could also influence market dynamics.
XRP now stands at a crossroads. With regulatory clarity achieved, market participants await the next catalyst that will determine whether XRP consolidates at current levels or pushes toward new highs.
XRP closed the most recent session at $3.22, maintaining its position above the psychologically important $3.00 level as markets digest the implications of the SEC case resolution.
The post XRP (XRP) Price: Breakout or Breakdown? Key $3.22 Level Holds the Answer appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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