XRP jumped 21%, breaking a months-long descending trendline and reclaiming the $1.55-$1.60 resistance zone. Spot XRP ETFs pulled in fresh inflows as the broader crypto market rallied, while derivatives traders keep betting against the move. The token now faces a test at $1.70-$1.75 before $2 comes into view.
XRP broke out of months of compression, pushing the token toward $1.67 on rising trading volume. The token had traded beneath a descending trendline for months, repeatedly printing lower highs while buyers defended the $1.05-$1.10 support zone. That compression resolved to the upside, clearing the descending trendline and reclaiming the $1.55-$1.60 resistance band.
ETF inflows add to the demand backdrop
The broader crypto market rally supplied liquidity for the breakout, with Bitcoin's recovery above $77,000 helping pull capital into large-cap altcoins. XRP also drew support from institutional demand: spot XRP ETFs recorded $13.24 million in net inflows on August 20, extending the streak to three straight positive sessions. Since the start of July, XRP ETFs have reportedly recorded only three days of net outflows and now hold nearly $1.2 billion in XRP exposure.
Bitwise clients also purchased approximately $16.89 million worth of XRP, reinforcing demand around regulated investment products. Together, the market-wide strength and the persistent XRP-specific inflows give the rally a firmer foundation than a purely speculative move.
Shorts keep fighting the rally
Binance XRP open interest climbed to approximately $263 million, a new high and roughly a 45% increase from about $181 million on August 3. Yet derivatives positioning has not fully aligned with the spot breakout: perpetual-market cumulative volume data has remained heavily negative, pointing to persistent aggressive selling even as price and open interest moved higher. Spot cumulative volume delta, meanwhile, improved from roughly -$250 million to -$194.8 million, suggesting spot-market selling pressure has eased.
What comes next
The breakout stays technically constructive as long as XRP holds above $1.55-$1.60. A daily close above $1.75 would strengthen the case and open the $2.00-$2.10 region as the next target; a sustained move back below $1.55-$1.60 would raise the risk of a retracement toward $1.30-$1.35. The daily RSI is approaching 90, which makes a short-term consolidation increasingly plausible without necessarily invalidating the breakout.
Source: Coinpedia Fintech News
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