#تابعني_لحصولك_علي_المزيد_من_المعلومات
XRP saw a notable rise in July, reaching its all-time high (ATH). Although the price has experienced a slight correction since then, it still maintains its position near its peak of $3.66. Historically, XRP has faced difficulties in August. However, this year may be different, as a gradual series of positive signals in the market are emerging.
XRP investors are more active than ever
Recent market developments have shown a drastic shift in XRP investors' sentiments. Nearly 946 million XRP, worth over $2.86 billion, was sold on exchanges in the past two and a half weeks. This is a wide-scale profit-taking, pushing the supply of XRP on exchanges to an eight-month high.
However, according to Alexis Circia, CEO of Yellow Network, these sell-offs did not last long.
Taking profits after reaching a peak is common, especially when the market is still in a consolidation phase. Notably, at its recent all-time high, both retail and institutional investors took advantage of this breakout to reduce their portfolio risks. However, I believe this selling pressure is only temporary. What makes a difference this time is that XRP's rise is not driven by speculative strategy, but supported by real factors such as regulatory compliance, cross-border payments, and the development of financial technology infrastructure, Circia commented.
Just one week after the sell-off wave, the market saw a repurchase of over 400 million XRP, valued at more than $1.2 billion. This rapid reinvestment rate shows that confidence in XRP's long-term potential remains strong, and the market is slowly trending upward.
XRP trading volume chart on exchanges | Source: Glassnode
In terms of macro factors, XRP also supports positive technical indicators, especially the NVT ratio (Network Value to Transactions) - which is the ratio of network capitalization to transaction value. This indicator is currently at its lowest level in five months, suggesting that the network value has not significantly exceeded actual transaction activity.
This is important because it shows that XRP has not experienced a sharp price increase. Without network inflation pressure, XRP has the chance to grow more sustainably without worrying about major corrections. This sets the stage for a potential recovery and breakout, especially as transaction activity on the XRP network continues and remains strong.
NVT ratio chart for Ripple | Source: Glassnode
Does XRP have a chance to recover in the near future?
According to data from Bitcoin Magazine, XRP is currently trading at $2.95, which means it has dipped slightly below the important support level at $3. Although it is still about 22% away from its all-time high of $3.66, the foundation for recovery remains very solid.
Historical data shows that August has typically been a negative month for XRP, with average monthly returns hovering around -6%.
Historical monthly returns chart for Ripple | Source: Cryptorank
However, with recent strong buying power and positive technical signals, this August may completely reverse the historical trend. If XRP can maintain the support area above $3.41, it is likely that this altcoin will challenge its all-time high once again.
Mr. Circia also shared more about XRP's long-term prospects:
Institutions that have been in the market for a long time are gaining increasing momentum. At the same time, we are in a macroeconomic environment where capital is rotating between asset classes based on risk... XRP is solidifying its position through regulation and infrastructure - not through hype or fear of missing out. This is what keeps it sustainable in the long run. Short-term flows are temporary, but the foundations being built today will shape the next entire cycle.
XRP price analysis chart | Source: TradingView
While the altcoin has a clear positive outlook, we cannot ignore the downside risks. If XRP fails to regain the support level at $3, its price may drop to $2.65, which is its lowest level in four weeks. In this case, selling pressure would increase, and the short-term bullish hypothesis may be invalidated.
In summary, despite short-term volatility, fundamental factors such as institutional money flows, stable technical signals, and a strong growth trajectory bolster the belief that XRP will maintain its recovery momentum in the coming months.