XRP Surge: Is the Rally Real or a Mirage?

TL;DR

• Despite hovering around the $3 mark, XRP faces a crucial test as major holders offloaded $2.1 billion worth of tokens, placing $2.48 as a key support level.
• Analysis of blockchain activity indicates $2.80 provides only short-term price stability, with more significant accumulation occurring closer to $2.48.
• Market observers are eyeing the $3.20 price point, as XRP’s price action consolidates within a range of $2.77 to $3.32.

XRP Stabilizes Near $3 After Correction from July Highs

Ripple’s XRP is currently trading near $3, reflecting a 5% increase over the last 24 hours. However, it has declined by 9% over the past week and remains 18% below its peak of $3.65 achieved on July 18th. During its upward surge, trading volume surged past $110 million per hour, indicating strong buying interest.

The upward climb lost steam when sellers emerged above $3.03, prompting a brief pullback as investors secured profits. XRP’s price has fluctuated between $2.83 and $3.03 in the last day, settling into a consolidation phase over the past week between $2.77 and $3.32.

Blockchain Data Highlights Important Support Zones

Analyst Ali Martinez’s insights reveal that XRP’s current market behavior is underpinned by previous accumulation areas. Approximately 1.80 billion XRP, representing 2.81% of the tokens in circulation, were previously purchased around $2.80. This level is offering temporary support.

A stronger zone of support exists below $2.48, where roughly 1.41 billion XRP, or 2.2% of the total supply, were previously exchanged. With less significant buying activity in between these two points, the current price is susceptible to rapid changes if selling pressure intensifies.

On-chain data shows that past accumulation behavior points to $2.80 as a temporary buffer for $XRP, but real support begins below $2.48. pic.twitter.com/7R7675Ubkz

— Ali (@ali_charts) August 3, 2025

Martinez also indicated that the Market Value to Realized Value (MVRV) ratio has recently formed a death cross, a potentially negative signal suggesting further price declines as a larger proportion of holders face paper losses.

Key Levels of Resistance and Support Being Monitored

Market analyst CRYPTOWZRD highlighted that both the XRP and XRP/BTC trading pairs closed the day with positive momentum. The immediate resistance points are located near $3.30 and $3.65. A breakthrough beyond $3.65 would establish a new high. The primary daily support rests at $2.80, with an intraday support at $2.83.

XRP Daily Technical Outlook:$XRP closed strongly bullish as XRPBTC recovered quickly. However, one more healthy bullish Daily candle in XRPBTC is necessary to call a complete reversal and push towards $3.6500. I’ll track its intraday chart for the next healthy trade pic.twitter.com/Et2M5DVWWT

— CRYPTOWZRD (@cryptoWZRD_) August 4, 2025

Near-term trading strategies are focused on the $3.20 level. Successfully surpassing this price could propel XRP towards $3.23. Failing to maintain that level could result in sideways trading action near the lower support areas.

On X, analyst CW mentioned that XRP is currently clearing out short positions after previously eliminating highly leveraged long positions. According to CW, a price movement to $3.06 could initiate a wave of short liquidations, potentially increasing short-term price swings.

Significant Selling by Large Holders Adds Downward Pressure

The strategy of major XRP holders has changed since the peak in July. Substantial quantities of XRP, exceeding 700 million tokens valued at over $2.1 billion, were sold within a single 24-hour period. This selling activity increases immediate pressure on the price and could encourage smaller investors to close their positions.

XRP’s price changes are occurring during a period of increased interest in alternative cryptocurrencies, against the backdrop of persistent global inflation and cautious monetary policies from central banks.