XRP News Today: XRP's Quiet Consolidation Could Fuel a Breakout Bigger Than December's Rally

Analysts suggest that Ripple’s XRP is on the cusp of a bullish continuation following a period of consolidation, with several technical indicators and market behaviors pointing toward renewed upward momentum. XRP has traded above its highest monthly closing price for nine consecutive months, a pattern often seen before major price expansions in assets like Bitcoin. The current sideways movement is viewed as a constructive pause, allowing the market to absorb gains and set up for a potential breakout.

Key resistance levels, particularly around $3.30, have been highlighted as critical for confirming a bullish continuation. Market strategist EGRAG emphasized that a monthly close above $3.30 would be essential for validating the breakout and potentially triggering a rally in September. This threshold aligns with the neckline of a double bottom pattern on the monthly chart, a structure historically associated with the start of long-term uptrends. XRP previously surpassed this neckline in December 2024, and a repeat performance could signal renewed strength.

Technical indicators also support a bullish outlook. XRP is forming an ascending triangle pattern, with key support at $2.95 and resistance between $3.15 and $3.55. If the price holds above $2.95, the bullish structure remains intact, and a break above $3.33 could open the door for further upside. Additionally, XRP has formed a bullish divergence against Ethereum (ETH), with the XRP/ETH pair recording lower lows while the RSI has trended higher, a classic sign of potential strength.

On-chain data further reinforces this narrative. The Percent Supply in Profit for XRP has dipped to 93.5%, the lowest level in nearly two weeks, indicating that profit-taking pressure is easing. Short-term holders are also increasing their positions, with the share of XRP held in one-to-three-month wallets rising from 5.8% on August 1 to over 9.2% by mid-August. This accumulation suggests growing confidence among market participants, even as larger whale wallets have been offloading significant amounts of XRP.

Analysts have also noted that Ethereum may soon enter a consolidation phase following its recent five-wave uptrend from $2,100 to above $4,200. In contrast, XRP has already been consolidating for nine months, absorbing heavy selling pressure and setting up for a potential outperformance scenario. If ETH pauses and XRP begins to regain momentum, the XRP/ETH pair could experience a significant upward move, particularly if key support levels hold.

While the overall setup appears favorable for a bullish continuation, risks remain. A failure to hold above $2.95 or a close below $2.72 could invalidate the current structure, leading to further weakness. However, given the combination of strong on-chain conviction, profit-taking slowdown, and favorable technical indicators, many analysts believe XRP is well-positioned for a recovery in the coming weeks.

Source: [1] XRP Set to Outperform ETH? Consolidation Hints at Next Bull Run (https://cryptopotato.com/xrp-set-to-outperform-eth-consolidation-hints-at-next-bull-run/) [2] Analyst Says XRP Needs $3.3 Monthly Close to End Consolidation (https://coincentral.com/analyst-says-xrp-needs-3-3-monthly-close-to-end-consolidation/) [3] Volume Triples Daily Average as XRP Bulls Battle $2.99 Resistance (https://www.coindesk.com/markets/2025/08/21/volume-triples-daily-average-as-xrp-bulls-battle-usd2-99-resistance) [4] XRP Correction Deepens with 5% Drop—Technical Setup Hints Potential Reversal Levels (https://bravenewcoin.com/insights/xrp-price-prediction-xrp-correction-deepens-with-5-drop-technical-setup-hints-potential-reversal-levels) [5] XRP Gains Strength On Supply Drop and Bullish Divergence Against ETH Breakout Brewing (https://bravenewcoin.com/insights/xrp-price-prediction-xrp-gains-strength-on-supply-drop-and-bullish-divergence-against-eth-breakout-brewing) [6] Ripple's XRP Drops 11% in 7 Days, But Bulls Aren't Worried (https://cryptopotato.com/ripples-xrp-drops-11-in-7-days-but-bulls-arent-worried/) [7] Expert States Most Likely Scenario for XRP Price Rally Continuation (https://timestabloid.com/expert-states-most-likely-scenario-for-xrp-price-rally-continuation/)