XRP Primed for Rise Towards $5 Following Crucial Test of $2.96 Support Level
In the ever-evolving world of cryptocurrencies, the market sentiment for XRP remains cautiously optimistic, with traders keeping a close eye on the price as it hovers around a critical support level of $2.96[1].
Technical indicators suggest a potential turning point for XRP. The Relative Strength Index (RSI) is trying to print a bullish divergence on small timeframes, hinting at a possible resurgence in strength for XRP at this support level[2]. Additionally, a surge in the funding rate, indicating increased leverage or open interest in futures markets, points towards heightened trader activity and possible volatility[1].
In July 2025, XRP displayed strong bullish momentum, surging over 65% from early July to mid-July, breaking above the $3 resistance level, and reaching a yearly high of about $3.66[1][2]. However, recent trading in August 2025 has seen XRP struggling around the $3 support, leading analysts to emphasize the importance of XRP closing August above $3.3 to trigger a confident upward surge potentially targeting new highs[3].
Analyst projections remain broadly bullish if XRP can hold above key support. Mr. Xoom predicts XRP could rally to between $6 and $8 by August 2025, representing a potential doubling or more from current price levels, driven by improved legal clarity around Ripple and technical breakouts[1][2]. Other analysts project a more conservative path with price targets ranging from around $3.12 to as high as $5.50-$5.53 in the medium term, depending on if XRP breaks the consolidation phase[4].
Analyst CasiTrades considers the $2.96 level as crucial for XRP's price movement, while CryptoBull predicts that a successful retest of the $2.96 level could lead to further gains, with potential targets at $3.50 and $5[5]. If XRP successfully maintains its position above $2.96, it could signal a normal retracement in a broader uptrend.
Meanwhile, the crypto landscape continues to evolve. The Trump Administration has signed the GENIUS Act, mandating stablecoin backing rules[6]. A16z and DeFi Education Fund have petitioned the SEC for DeFi regulatory clarity[7]. Sapien is bringing millions of minds onchain to train AI[8], and there's a new project called TOP with no further details provided[9].
In other news, Ripple acquired Rail for $200 million to boost its payment network[10], Diginex is acquiring compliance firm Findings for $305 million[11], and there's a press release for a project called Sapien with no further details provided[12]. BTCC Exchange announced its first sports sponsorship with NBA's Jaren Jackson Jr.[13], and a bullish cryptocurrency exchange saw a 176% surge on its IPO debut[14].
OpenServ and LunarCrush are turning 50 million posts an hour into AI apps[15], while ChainCatcher collaborated with Alibaba Cloud for Web3 infrastructure[16]. The White House criticized US banks for Bitcoin ETF access limitations[17], and Bitcoin leverage has hit a 5-year high as ETF inflows surge[18].
As the market dynamics for XRP reflect a critical support level around $2.96, the near-term outlook for XRP depends on overcoming the $3 to $3.3 resistance zone with solid momentum. If successful, the bullish trend may fuel the anticipated surge to new all-time highs. Failure to hold support may lead to further consolidation or correction before another attempt at rallying[1][2][3][4].
[1] Source 1 [2] Source 2 [3] Source 3 [4] Source 4 [5] Source 5 [6] Source 6 [7] Source 7 [8] Source 8 [9] Source 9 [10] Source 10 [11] Source 11 [12] Source 12 [13] Source 13 [14] Source 14 [15] Source 15 [16] Source 16 [17] Source 17 [18] Source 18
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