Key Insights:
- XRP maintains an ascending triangle, signaling a possible breakout past the $3.66 resistance level.
- Institutional interest grows as Japan’s SBI Holdings files for a Bitcoin-XRP ETF product.
- Rising volume despite a price decline points to increasing accumulation and investor confidence in XRP’s utility.
On August 6, XRP traded at $2.93 after dropping 3% in 24 hours. Despite the recent dip, technical indicators remain positive. Analysts highlight the preservation of an ascending triangle pattern, signaling a potential reversal. This pattern has previously preceded significant rallies, notably in July when XRP surged over 40% after a similar formation.
Analyst Crypto Cred points to the $3.66 resistance level as the key barrier for XRP. The ascending triangle suggests growing buyer momentum, as support levels rise steadily. If XRP breaks past this resistance, a push toward $4 becomes increasingly likely. The same pattern confirmed a rally last month, reinforcing the potential for a similar move.
Volume Increase Adds to Bullish Momentum
A second analyst, CryptoPulse, noted that XRP volumes are rising even as the price trends lower. He emphasized the emergence of utility-driven momentum in XRP and other altcoins, suggesting increased organic demand. This volume trend could strengthen XRP’s case for a breakout, separating it from broader market movements like Bitcoin’s recent cooling phase.
Institutional demand is also emerging as a key catalyst. Japan’s SBI Holdings, managing $241 billion in assets, has submitted a proposal for a Bitcoin and XRP exchange-traded fund (ETF). If approved, the fund could drive institutional inflows into XRP in the Japanese market. The firm also plans a second ETF combining crypto and gold, signaling efforts to integrate traditional finance with digital assets.
Ripple Case Outcome Could Influence U.S. Market
In the United States, developments in the Ripple vs. SEC lawsuit are closely watched. A potential dismissal by August 15 could pave the way for regulatory approvals, including crypto ETFs. Such a move would likely boost investor confidence and open new avenues for XRP adoption.
