XRP is entering a pivotal phase following its strong August rally, with technical indicators and institutional activity both pointing toward a potentially significant next move.

The token is currently trading around $1.37, up 1.79% over the past 24 hours. XRP's market capitalization stands at approximately $86.05 billion, with 24-hour trading volume of about $3.60 billion. The cryptocurrency holds a 3.28% share of overall market dominance as investors assess whether the recent rally has staying power. XRP, the token associated with Ripple's payments network, has long been one of the largest cryptocurrencies by market value, and its price action is often sensitive to developments in both technical trading setups and US crypto regulation.

XRP Could Retest the $1.15-$1.25 Zone

A potential inverse head-and-shoulders formation has strengthened the bullish case. According to a recent post by crypto analyst Gopal (on X), XRP defended the $1.00 support area strongly, while the pattern's neckline sits near $1.68. A confirmed breakout and sustained move above this resistance could signal stronger upward momentum, with the pattern projecting a possible target near $2.40.

However, the technical picture also allows for another decline before a larger move higher. The current four-hour Elliott Wave count suggests XRP may be developing an ABC corrective structure following its August advance. Under this scenario, the token could first retrace toward the $1.15-$1.25 region before beginning a larger bullish Wave 3, as outlined in the associated chart analysis.

XRP Could Target $3.10 After the Correction

Within the current wave, possible Wave B recovery levels are seen near $1.46 and $1.55, while potential Wave C targets sit around $1.25 and $1.15. Fibonacci levels close to $1.19 and $1.13 could also turn into support if selling pressure intensifies.

The larger bull-case scenario is considerably more optimistic, with the chart indicating potential Wave 3 targets near $2.90 and $3.10. Before that, the cryptocurrency would need to complete its correction and reclaim its resistance levels.

Institutional Demand Supports XRP's Longer-Term Outlook

Institutional demand has provided additional backing for XRP's recent performance. In August, US spot XRP ETFs received roughly $153.55 million in inflows, with momentum strengthening toward the end of the month. Spot XRP ETFs began trading in the United States in 2025, giving institutional investors a regulated vehicle for XRP exposure for the first time, and monthly flow data has since become a closely watched gauge of demand.

Ripple, meanwhile, has continued expanding its financial infrastructure. On August 3rd, the company invested in ZILO and Licuido, focusing on regulated transfer-agency, asset issuance, and collateral-mobility services on the XRP Ledger.

Regulation could also shape XRP's next major move. On August 18th, the SEC proposed Regulation Crypto Assets, aimed at establishing rules for crypto-asset investment contracts and providing a conditional safe harbor. The proposal follows years of legal contention between Ripple and the SEC over XRP sales, a case that has shaped the token's regulatory profile in the US market.

For the market, the key levels remain clear. A breakout above $1.68 would confirm a bullish setup, while a move toward $1.15-$1.25 could indicate that XRP is still completing its correction before its next attempt to move higher.