XRP in August: Has the upward momentum ended or is it just beginning?

XRP just experienced an impressive bullish period in July when it set a new historical peak of (ATH). Although the price has seen a slight correction since then, XRP is currently maintaining a position quite close to its peak of $3.66.

Based on historical data, XRP often struggles in August. However, this year may be different, as a series of positive signals are gradually appearing in the market.

XRP investors are more proactive than ever

Recent market developments indicate a significant shift in the sentiment of XRP investors. In the past two and a half weeks, nearly 946 million XRP, equivalent to over 2.86 billion USD, have been sold on exchanges. This is a large-scale profit-taking move, causing the supply of XRP on the exchange to reach its highest level in the past 8 months.

However, according to Mr. Alexis Sirkia, CEO of Yellow Network, this sell-off will not last long.

"Taking profits after reaching a peak is common, especially when the market is still in a phase of consolidating confidence. Notably, at the recent ATH, both retail and institutional investors took advantage of the breakout to reduce portfolio risk. However, I believe that this selling pressure is only temporary. What differentiates this time is that the bullish trend of XRP does not come from speculative strategies, but is supported by real factors such as regulatory compliance, cross-border payments, and the developing financial technology infrastructure," Sirkia commented.

Just one week after the sell-off, the market has witnessed more than 400 million XRP, worth over 1.2 billion USD, being repurchased. This rapid reinvestment pace indicates that confidence in the long-term potential of XRP remains very strong, and the market is gradually shifting towards a bullish sentiment.

XRP volume chart on exchanges | Source: GlassnodeConsidering macro factors, XRP is also being supported by positive technical indicators, especially the NVT ratio (Network Value to Transaction) – which is the ratio of network capitalization to transaction value. Currently, this indicator is at its lowest level in 5 months, indicating that the network value has not significantly exceeded actual transaction activity.

This is very important because it shows that XRP is not "overheated" yet. In the context of no pressure from the "inflation" of network value, XRP has a greater opportunity for sustainable growth without worrying about major corrections. This sets the stage for a potential recovery and breakout, especially as trading activity on the XRP network remains active and healthy.

XRP NVT ratio chart | Source: Glassnode## Will XRP have a chance to rebound in the near future?

According to data from Bitcoin Magazine, XRP is currently trading at $2.95, which is slightly below the important support zone at the $3 mark. Although it is still about 22% away from the historical peak of $3.66, the foundation for recovery remains quite solid.

Historical data shows that August usually brings a not very positive performance for XRP, with an average monthly return of around -6%.

The monthly profit chart in the past of XRP | Source: CryptorankHowever, with the strong buying force recently along with positive technical signals, August this year could completely go against the historical trend. If XRP can maintain the support level above 3.41 USD, this altcoin is likely to challenge the ATH mark once again.

Mr. Sirkia also shared more about the long-term prospects of XRP:

"Organizations that have been in the market for a long time are currently regaining their bullish momentum. At the same time, we are also in a macro environment where capital flows are rotating among asset classes based on risk levels… XRP is asserting its position through legal factors and infrastructure – not thanks to hype waves or FOMO effects. This is the sustainable factor in the long run. Short-term capital flows are only temporary, but the foundations built from today will shape the entire upcoming cycle."

XRP Price Analysis Chart | Source: TradingViewAlthough this altcoin has a very clear bullish outlook, we cannot overlook potential risks. If XRP fails to reclaim the support area of 3 USD, the price could slide to 2.65 USD – the bottom level in the past 4 weeks. If this scenario occurs, selling pressure will increase, and the short-term bullish thesis may be invalidated.

In summary, despite some short-term fluctuations, fundamental factors such as institutional cash flow, stable technical signals, and a solid development direction are reinforcing the belief that XRP will maintain its recovery momentum in the coming months.

Justin