$XRP has surged over 18% in the last 24 hours, trading around $1.31 as of August 21. This recent increase has reignited interest in the $1.50 mark, following a brief peak near $1.34.
According to CoinGecko, $XRP started the day at about $1.10 before climbing to approximately $1.34, then briefly dipping to around $1.23, before rebounding above $1.30. Over the past week, its value has risen by about 30%.
This price increase coincided with a general rise in cryptocurrency values, particularly Bitcoin, which exceeded $75,000 during Asian trading on Friday after crossing the $70,000 threshold.
This upward movement followed the US Treasury’s announcement to at least double its liquidity-support buybacks for long-term government bonds.
The Treasury specified that this increase pertains to nominal coupon securities with maturities ranging from 10 to 30 years.
As a result, markets initially saw a reduction in yields and a weaker US dollar, while risk assets, including cryptocurrencies, experienced gains.
Recent developments concerning Ripple and institutional lending on the $XRP Ledger have also contributed to the token’s positive momentum.
On August 20, Ripple, along with Clearpool and Cicada Partners, announced new plans for an institutional credit product aimed at providing RLUSD-based working-capital loans to fintech and payment firms.
Clearpool will supply the necessary infrastructure to establish and manage the lending pools.
Since 2021, the company has facilitated over $930 million in institutional loans.
Cicada Partners will handle borrower sourcing, set lending terms, and oversee credit risk while also acting as the fund’s general partner and credit pool manager, overseeing more than $860 million in credit underwriting.
Ripple will join as a limited partner, contributing capital alongside other institutional investors.
While Ripple will not guarantee the loans or cover losses incurred by other investors, the specifics of its investment and the anticipated fund size remain undisclosed.
Additionally, significant holders of $XRP have also been active in the market. Analyst Ali Martinez noted that “whales” acquired over 300 million $XRP in just four days, further boosting demand as the token recovered from its recent lows.
$XRP Market Analysis
A closer look at the daily chart reveals that $XRP‘s recent uptrend has broken through several key technical barriers that had previously suppressed its price during recent months.
The price chart for $XRP/$USDT illustrates this movement. Source: TradingView.
According to the 21-day Donchian Channel, $XRP is exceeding its upper limit near $1.268 after a significant rise in trading volume.
If it remains above the $1.27 mark, this breakout is likely to hold; however, a dip below this level could undermine the strength of the recent upswing.
Additionally, $XRP has regained its 20-day, 50-day, and 100-day exponential moving averages, currently positioned around $1.083, $1.092, and $1.160, respectively.
The more critical resistance level now lies at around $1.342, represented by the 200-day EMA. The token’s recent intraday surge towards $1.34 places it right at this resistance, meaning that overcoming the $1.34-$1.35 area is essential for bulls before the $1.50 target appears reachable.
A closing price above the 200-day EMA could lead to a move towards $1.40, while further along, the prior price structure suggests a focus on $1.48-$1.50. Surpassing the $1.50 mark could reveal the trading range from March, around $1.55-$1.60.
Shorter-term metrics indicate strong buying activity, although they also caution that the rally may be overextended.
On the 4-hour chart, $XRP is hovering around $1.31, with the session’s VWAP around $1.30.
The 4-hour price chart for $XRP/$USDT. Source: TradingView.
Maintaining prices above the VWAP keeps buyers dominant in the short-term trend, with a support zone forming in the VWAP range between roughly $1.29 and $1.31, which should hold if profit-taking occurs.
Furthermore, the 14-period Money Flow Index has surged to around 88, surpassing the 80 threshold typically linked to overbought scenarios.
This indicator reveals strong momentum in both price and volume, but it also suggests that $XRP could be due for a retreat or consolidation after its rapid ascent.
If $XRP fails to surpass the 200-day EMA and breaks below the $1.29-$1.27 support area, the next downside target could be around $1.20-$1.16, closely aligned with the daily 100-day EMA level.