XRP just experienced an impressive price increase in July when it set a new historical peak (ATH). Although the price has seen a slight correction afterward, XRP is still maintaining a position quite close to its peak of $3.66. Based on historical data, XRP often struggles in August. However, this year might be different, as a series of positive signals are gradually appearing in the market.
XRP investors are more proactive than ever
Recent market developments show a strong shift in investor sentiment towards XRP. In the past two and a half weeks, nearly 946 million XRP, equivalent to over 2.86 billion USD, has been sold on exchanges. This is a large-scale profit-taking move, causing the supply of XRP on exchanges to reach its highest level in the past 8 months.
However, according to Mr. Alexis Sirkia, CEO of Yellow Network, this sell-off will not last long.
"Profit-taking after reaching a peak is common, especially when the market is still in a phase of building confidence. Notably, at the recent ATH, both retail and institutional investors took advantage of the breakout to reduce portfolio risk. However, I believe this selling pressure is only temporary. What makes this time different is that the rise of XRP is not driven by speculative strategies, but backed by real factors such as legal compliance, cross-border payments, and developing financial technology infrastructure," Sirkia noted.
Just a week after the sell-off, the market has witnessed over 400 million XRP, worth more than 1.2 billion USD, being repurchased. This rapid reinvestment rate shows that confidence in the long-term potential of XRP remains very strong, and the market is gradually shifting to an optimistic mindset.
Considering the macro factors, XRP is also supported by positive technical indicators, especially the NVT ratio (Network Value to Transaction) – the ratio between network capitalization and transaction value. Currently, this indicator is at its lowest level in 5 months, indicating that the network value has not far exceeded actual trading activity.
This is significant because it shows that XRP has not been 'overheated'. In the absence of pressure from the 'inflation' of network value, XRP has a better opportunity for sustainable growth without worrying about major corrections. This sets the stage for a recovery and potential breakout, especially as trading activity on the XRP network remains vibrant and healthy.
Will XRP price have a chance to rebound in the near future?
According to data from Bitcoin Magazine, XRP is currently trading at 2.95 USD, which means it has slightly slipped below the important support zone at 3 USD. Although it is still about 22% away from the historical peak of 3.66 USD, the foundation for recovery remains quite solid.
Historical data shows that August often brings less positive performance for XRP, with an average monthly return around -6%.
However, with strong buying power recently along with positive technical signals, this August could completely go against historical trends. If XRP can hold the support zone above 3.41 USD, this altcoin is likely to challenge the ATH mark once again.
Mr. Sirkia also shared about the long-term prospects of XRP:
"Institutions that have been in the market for a long time are currently regaining growth momentum. At the same time, we are also in a macro environment where capital flows are rotating between asset classes according to their risk levels... XRP is asserting its position through legal factors and infrastructure – not due to hype or FOMO effects. This is the sustainable factor in the long term. Short-term cash flows are only temporary, but the foundations built today will shape the entire next cycle."
Although this altcoin has very clear bullish prospects, we cannot overlook the risk scenarios. If XRP cannot regain the support zone of 3 USD, the price may slide back to 2.65 USD – the bottom in the past 4 weeks. If this scenario occurs, selling pressure will increase, and the short-term bullish thesis may be invalidated.
In summary, although there are still short-term fluctuations, foundational factors such as institutional cash flow, stable technical signals, and a solid development direction are reinforcing the belief that XRP will maintain its recovery momentum in the coming months.