XRP price action is gaining serious attention as bulls approach the key $3 psychological level, showing renewed investor interest amid improving market sentiment.

Market Momentum and Context

The recent surge in XRP reflects a broader calm across the crypto market, where altcoins have begun recovering after a period of decline. Notably, XRP saw volumes rise more than 6% compared to its usual weekly performance. Institutions in particular appear to be stepping in, with on-chain metrics revealing a whopping 155 million XRP traded during the recent recovery—in stark contrast to its 63 million average daily turnover. Though some excited traders mistook the rise for all-time highs, XRP’s actual peak remains at $3.84, recorded in January 2018. This recent movement is more of a bounce-back rather than setting new records.

Trading Range and Intraday Movement

In the 23-hour period from August 20 at 13:00 UTC to August 21 at 12:00 UTC, XRP traded within a tight range of $2.84 to $2.99, marking a 5.1% swing. The sharpest upward move happened around 19:00 UTC on August 20 when XRP leapt from $2.84 to $2.99 on trading volume surging to 80.6 million tokens. This activity suggested heightened momentum driven by renewed bullish sentiment.

After touching the intra-session high, XRP consolidated over several hours. Price consistently bounced between $2.89 and $2.93, establishing this zone as a short-term technical support area. But the most volatile moment arrived in the final hour before 12:00 UTC on August 21, when prices abruptly swung 8.6% — dropping from $2.916 to $2.901—spanning a volume of 960,000 tokens before stabilizing again.

Key Technical Indicators

Market participants are closely monitoring how XRP behaves around the key levels revealed during this consolidation phase:

• Support Zone: The $2.89 to $2.93 range has seen several rebounds with above-average buy-side interest, making it a critical area to watch.
• Resistance Level: The $2.99 to $3.00 mark represents a psychological barrier, where price has been rejected multiple times — reinforcing its role as a ceiling for now.
• Trading Volume: During the rally, volume hit 80.65 million — a sharp rise from the typical 63 million baseline — indicating that renewed buying enthusiasm is playing a significant role.
• Pattern Insight: The current consolidation suggests that bullish energy may be pausing. While sideways movement dominates short-term charts, the fading upward momentum leaves room for either correction or breakout.

Strategic Focus for Crypto Traders

Short-term sentiment hinges on a few critical developments. First, whether the $2.93 support continues to hold will determine if XRP maintains its foothold or tumbles toward a potential retest of $2.82. Traders are also laser-focused on a breakout beyond $3.00, which could set off another bullish leg.

Equally important is volume sustainability. If the current high-volume trend weakens, XRP bulls could lose their grip and allow sellers to gain control. Ongoing participation levels will thus be a leading indicator for momentum and potential trend confirmation.

XRP’s price activity over a 23-hour window illustrates volatile swings, with resistance near $3 remaining firm.

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

As the market eyes the next decisive movement, XRP remains in a critical position, teetering between short-term consolidation and a potential breakout beyond its long-stagnant levels.