XRP (XRP) Price: Technical Analysis Shows Potential 10% Rise to $3.30 Level

TLDR

• XRP broke past $3.07 with $58.6 million whale transfer from Upbit to unknown wallet
• Exchange outflows of 29.38 million XRP suggest accumulation by long-term holders
• $75.65 million in short positions stacked near $3.11 could trigger liquidation cascade
• Technical indicators show bullish setup on four-hour chart after breaking key resistance
• Price may rise 10% to $3.30 if it holds above $3 level

XRP is showing signs of a potential rally as whale activity increases and technical indicators turn bullish. The cryptocurrency is currently trading around the $3 mark, maintaining most of its 35% monthly gain despite losing 5.3% over the past week.

On August 5, Whale Alert detected a massive transfer of 20 million XRP (worth $58.6 million) from Upbit to an unknown wallet. This type of large transfer often indicates whale accumulation, particularly when it aligns with broader market trends.

Supporting this bullish outlook, CoinGlass data shows that spot exchanges experienced net outflows of 29.38 million XRP over the previous 24 hours. This pattern typically suggests that long-term holders are withdrawing their assets, a behavior associated with accumulation strategies and price optimism.

At press time, XRP was trading at $3.06, up 0.79% in 24 hours, with trading volume remaining flat, possibly indicating market indecision before the next major move.

Despite these positive signals, traders appear to be taking bearish positions. According to the Exchange Liquidation Map, short liquidations totaling $75.65 million are concentrated near the $3.11 level. Meanwhile, $42.85 million in long positions hover around $2.97, creating high-risk zones on both sides.

Short Squeeze Potential

The current market structure presents an interesting dynamic. With short positions ($1.6 billion) significantly outweighing long positions ($784 million), a sudden upward price movement could trigger a classic short squeeze. A 10-14% price increase could potentially push XRP to $3.40 through forced liquidations.

A similar event occurred between July 24 and July 27 when XRP surged from $2.95 to over $3.30 without any clear catalyst, raising questions about market manipulation but demonstrating the potential for rapid price movements.

Whale behavior adds another dimension to this analysis. Data on whale-to-exchange flows indicates that large holders were selling actively during past rallies. On July 30, whale inflows peaked at over 55,000 XRP as the price fell below $3.00. Again on August 3, inflows reached 38,226 XRP as the price approached $3.00.

However, inflows have since decreased to 34,140 XRP on August 4, even as the price remains above $3.00. This divergence between rising price and decreasing whale transfers to exchanges could indicate easing sell pressure from major holders, potentially supporting a short-term bullish outlook.

Technical Analysis Points to Key Levels

Technical analysis reveals that XRP has turned bullish on the four-hour chart after breaking through a key resistance level. The cryptocurrency is currently trading inside a falling broadening wedge pattern, which often precedes bullish breakouts.

XRP Price on CoinGecko

XRP is approaching the upper trendline of this wedge, and a breakout above $3.19 would put it on track to challenge the $3.30 level. This price point is more than just a round number – it aligns with a key Fibonacci retracement level and coincides with a significant liquidation cluster.

If XRP holds above the $3 level during the ongoing retest, there’s a strong possibility of a 10% increase to reach $3.30. This zone represents local resistance and may act as a short-term barrier for Ripple’s upward momentum.

The breakout has triggered a green Supertrend signal, with XRP now trading above it, suggesting returning bullish sentiment. However, for a sustained rally to be confirmed, XRP would need to cross $3.45, which would liquidate all short positions according to Bitget data.

If the price fails to hold above $3 and breaks below $2.72, the bullish setup would be invalidated, potentially leading to deeper losses.