XRP Price Update: Testing $3.08 Support Amid Volatility

The XRP price is currently facing significant pressure after recently soaring to $3.66, marking one of its most aggressive highs in recent years. Following this rally, Ripple’s native token is testing a key support level at $3.08, navigating a complex mix of macroeconomic signals and market sentiment.

In July, XRP surged in value after a crucial legal ruling clarified that Ripple’s token sales did not qualify as unregistered securities. This decision unlocked pent-up institutional interest, resulting in high on-chain activity as remittance firms, payment processors, and fintech companies—especially across Asia and Latin America—integrated RippleNet to streamline cross-border transactions.

However, shifting macroeconomic winds in August have tempered the bullish momentum. The U.S. Producer Price Index dramatically surpassed expectations, registering a 3.3% year-over-year increase versus the forecasted 2.5%. This sparked a rally in the U.S. dollar and diminished investor appetite for risk-heavy digital assets. Mirroring bitcoin’s decline from $124,517 to $118,000, XRP dropped below $3.30, eventually challenging the $3.08 support line amid $9.64 billion in daily trading volume.

The technical setup for XRP remains intricate. A short-term ascending triangle pattern on the 4-hour chart highlights conservative resistance at $3.32, a barrier XRP has struggled to breach. On a broader daily scale, higher lows and a neutral-to-bullish trend suggest potential for continued growth, but diminishing volume is raising doubts about sustained upward pressure. If XRP falls below the $3.00 level, it could test the 50-day EMA at $2.92, followed by deeper retracements to $2.69 and $2.42.

Momentum indicators present a mixed outlook. The Relative Strength Index (RSI) sits at 57.6, suggesting a balanced state, while Stochastics at 74.8 point towards slight overbought conditions. The MACD indicator has been flashing bearish since July 24, with a negative histogram hinting at waning upside momentum. The ADX reads 30.6, signaling moderate trend strength without a clear directional inclination. To break out of this range, XRP must overcome the $3.32 resistance with robust volume, or risk descending further to retest the $3.00 level.

In derivatives markets, long positions have taken a hit. The latest data reveals that over $62 million in positions were liquidated in a single day, with long trades accounting for $57 million of the total. These figures underscore the vulnerability of bullish positions in the face of macroeconomic shocks. If XRP rebounds from the $3.00 zone, it may trigger a short squeeze, but a failure to hold could accelerate further losses as traders reposition defensively.

Investor sentiment has also been impacted by alleged manipulative activity on the XRP Ledger. A validator node known as “Grapedrop” has been accused of facilitating repeated high-volume wash trades across exchange-controlled wallets. Transfers exceeding millions of XRP were conducted hourly, leading to speculation that volume metrics were being artificially inflated. Although not definitive proof of manipulation, these patterns raise concerns about market transparency in XRP trading data.

Future projections for XRP are deeply divided. One veteran analyst anticipates a climb to $12.73 within 40 days, identifying parallels to 2017’s explosive growth phase. In contrast, another forecast proposes a peak at $9 followed by a sharp 85% decline, emphasizing the historically cyclical nature of XRP’s price behavior. Other models suggest a rally to $27, only to fall dramatically to $0.80 in a classic boom-bust scenario.

Technical analysts currently highlight the significance of the $3.11 level, positioned in the golden Fibonacci retracement zone. A strong recovery above this level—now acting as near-term support at $3.21—could reignite bullish energy toward the prior high of $3.66. If successfully breached, it could open the door to targets between $4.60 and $4.80. A majority of traders on key prediction platforms expect XRP to hit $4 before sliding to $2, reinforcing optimism for upside moves.

Related: XRP Price: $12M Max Pain for Bears

Meanwhile, real-world adoption of the XRP Ledger continues to gain traction. Financial institutions are increasingly embracing Ripple’s infrastructure to enhance international transfers, particularly in regions lacking adequate SWIFT coverage. As transaction volumes grow, the narrative around XRP’s utility deepens—suggesting that this rally may be rooted in fundamentals, not just speculative hype. With bitcoin and ethereum consolidating, Ripple’s token may lead a broader resurgence in altcoins heading into the final quarter of the year.