XRP News Today: XRP Rebounds 8.11% Above 3.20 as ETF Optimism Sparks 4 Ascent Potential

XRP has demonstrated early signs of recovery, rebounding above $3.20 after a sharp decline to $2.96, sparking speculation about a potential ascent toward $4 amid growing optimism over exchange-traded fund (ETF) developments [1]. The cryptocurrency’s resilience has been attributed to strong buying pressure at critical support levels, with bulls defending the $3 threshold as a foundation for further gains. Analysts from COINOTAG noted that sustained control above this level could signal an upward trend, with the $4 psychological resistance emerging as a focal point [2]. This optimism aligns with broader market movements, as XRP’s recovery coincides with a broader crypto sector rebound following a week marked by $735 million in liquidations across the market [3].

The recent liquidation event, which erased over $105 million in XRP long positions, triggered a 6.56% price drop, underscoring the altcoin’s vulnerability to volatility. However, the swift post-liquidation rebound has been interpreted by market participants as a sign of buying opportunities rather than bearish momentum. Traders emphasize that the ability to hold above $3.20 suggests institutional or retail investors are capitalizing on dips, potentially setting the stage for a renewed rally. This dynamic is further amplified by anticipation of ETF-related momentum, with analysts highlighting the role of regulatory clarity and institutional adoption in shaping XRP’s trajectory [4].

While the $2.96 level remains a crucial support zone—breakdowns below this threshold could trigger a deeper correction toward $2.60—current price action indicates buyers are actively defending higher ground. A successful retest of the $3.66 resistance, last seen as a July 17 high, would validate bullish strength and open pathways toward $4.00 and beyond. Technical analysts stress the importance of monitoring volume and order flow to gauge the sustainability of this rally, noting that profit-taking and fresh buying will determine short-term outcomes [5].

The interplay between ETF optimism and market volatility has introduced a dual-edged dynamic. On one hand, growing speculation around spot XRP ETFs has boosted investor sentiment, with some institutions expressing long-term confidence in the asset. On the other, large-scale selling pressures from high-net-worth individuals, such as Ripple co-founder Chris Larsen’s $200 million XRP outflows in early July, have raised concerns about liquidity risks. Larsen’s wallet, which holds $8.83 billion in XRP, remains a key factor; further liquidations from this source could exacerbate downward momentum, particularly if institutional demand wanes before an anticipated August market lull [6].

Despite these risks, the unregistered status of XRP in the U.S. and ongoing legal challenges do not appear to have dampened speculative enthusiasm. Analysts caution that while ETF-related momentum could propel XRP toward $4, the token’s fundamentals remain weak, and its recovery is contingent on broader altcoin rebounds following Bitcoin’s consolidation. The market’s reaction to potential ETF approvals will likely hinge on regulatory developments, with futures-based exposure potentially serving as a proxy for institutional demand [7].

Investors are advised to remain cautious as XRP tests the $3.06 support level, with mixed signals from whale activity and regulatory uncertainties complicating its outlook. The balance between ETF-driven optimism and liquidity risks will be critical in defining XRP’s next phase.

Source:

[1] [title1] [https://en.coinotag.com/xrp-shows-signs-of-recovery-potentially-targeting-4-amid-etf-optimism-and-market-volatility/]

[2] [title2] [https://en.coinotag.com/xrp-shows-signs-of-recovery-potentially-targeting-4-amid-etf-optimism-and-market-volatility/]

[3] [title3] [https://en.coinotag.com/xrp-shows-signs-of-recovery-potentially-targeting-4-amid-etf-optimism-and-market-volatility/]

[4] [title4] [https://coincentral.com/ripple-co-founder-chris-larsen-sells-175-million-xrp-after-all-time-high/]

[5] [title5] [https://coinpedia.org/news/xrp-price-drop-etf-support-level-analysis-2025/]

[6] [title6] [https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns]

[7] [title7] [https://www.coindesk.com/analysts-see-xrp-hitting-4-solana-250-as-etf-buzz-builds]