After a brutal $1 billion liquidation wave knocked XRP to weekly lows, late-session buying suggests whales are reloading. Analysts now see the dip as a shakeout, with the next leg potentially catapulting prices toward $5 amid weakening sell pressure.
Summary
- XRP rebounds from $3.05 after a $1 billion crypto market liquidation, with whale accumulation suggesting a potential breakout toward $5.
- Analysts highlight a bullish flag pattern on the daily chart, but price must reclaim $3.13 resistance amid macroeconomic headwinds.
- Institutional support and Ripple CTO’s remarks on XRP Ledger utility help underpin sentiment despite broader market volatility.
On August 15, a market analyst on X flagged a critical development: XRP’s price action had formed a bullish flag pattern on the daily chart. According to the analyst, this technical setup, which often precedes explosive upside moves, points to a potential breakout toward $5.00.
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The call came just hours after the token weathered one of its most volatile sessions this quarter, with a violent liquidation cascade wiping out over $1 billion in leveraged positions across crypto markets and sending XRP tumbling to $3.05.
Yet, while retail traders scrambled, blockchain data revealed large holders were quietly accumulating at key support levels, propping the token back above $3.10 before it settled around $3.00 as of press time, crypto.news data shows.
Why XRP’s bullish setup defies short-term market pressures
At first glance, that bullish flag pattern pointing to $5.00 seems at odds with XRP’s 7% slide. But beneath the surface, this doesn’t appear to be an XRP-specific breakdown. The entire crypto market got caught in a liquidation whirlwind while traditional markets suddenly turned risk-averse.
Traders started taking money off the table ahead of the Fed’s Jackson Hole meeting, sending U.S. stocks lower. And when equities sneeze, crypto tends to catch a cold. The correlation was unmistakable: when the S&P 500 faltered, so did XRP, testing critical support at $3.05 before institutional buyers stepped in.
What makes this recovery notable isn’t just the resilience at $3.05; it’s the way XRP stabilized. Trading volume plummeted 38% after the midday sell-off, suggesting liquidation pressure had exhausted itself.
Meanwhile, previous late-session volume spikes revealed large players were accumulating at discounted levels, treating the dip as a buying opportunity rather than a reason to flee.
This aligns with Ripple CTO David Schwartz’s recent comments reinforcing the XRP Ledger’s institutional-grade utility, a fundamental anchor that may be mitigating panic during technical downturns.
The path to $5: A battle between momentum and macro risks
For the analysts eyeing the $5.00 target, the key question isn’t whether XRP can break out, but whether it can do so before broader market headwinds intensify. For XRP to make its next move, two critical factors come into play.
XRP faces a clear technical hurdle at the $3.13 level; what was once support has now become resistance. The market’s next move hinges on whether buyers can firmly establish this price as a new base of operations.
The bigger wildcard remains the traditional financial markets. Cryptocurrencies continue dancing to the stock market’s tune, and all eyes are on potential volatility from the Fed’s upcoming policy signals.
Yet zooming out reveals an encouraging setup. XRP currently trades within striking distance of its historic peak, and this period of consolidation bears an uncanny resemblance to the quiet before previous dramatic surges.
