XRP's price rose 9.4% as demand for altcoins strengthened, putting the $2 level in focus for traders.

XRP is the token associated with the XRP Ledger, a payments-focused blockchain whose native asset is consistently ranked among the largest cryptocurrencies by market capitalization. Its price moves are often closely watched as a gauge of broader altcoin sentiment.

Trading volume also increased 7.66% to approximately $2.88 billion. At the same time, the CoinMarketCap Altcoin Season Index climbed 9.38%, indicating that market activity was broadening beyond Bitcoin. The index measures whether capital rotation is favoring alternative cryptocurrencies over Bitcoin; a rising reading suggests altcoins are outperforming the market's largest asset.

The move higher came after comments from Federal Reserve Governor Christopher Waller reduced expectations for a September rate hike. In remarks on Thursday, Waller said he was inclined to support keeping interest rates unchanged at the Federal Reserve's September meeting, provided upcoming inflation data does not deliver unexpected results.

The shift in rate expectations provided a broader backdrop for the recovery in risk-sensitive assets, including cryptocurrencies. Lower-rate environments have historically coincided with greater appetite for speculative assets, because holding non-yielding assets becomes comparatively more attractive when borrowing costs and safer returns decline.

XRP Price Breakout Puts $2 in Focus

XRP's recent advance follows months of repeated resistance between $1.30 and $1.55, according to market analyst Cleo Schmidt. The analyst said recent price action has changed the significance of that range, with the former resistance area now acting as an important support zone.

For the current breakout structure to remain intact, buyers need to defend the $1.30 to $1.35 region. A sustained hold in that area could leave XRP positioned for a move toward $2, although the token still faces several resistance levels along the way.

The $1.44 level is an important near-term threshold. Above it, XRP would encounter heavier selling pressure around $1.55. A decisive move through that resistance would offer stronger confirmation of the broader bullish setup and make the projected move toward $2 more plausible.

XRP Support Levels Remain Critical

Despite the recent gains, the technical structure remains dependent on XRP holding its newly established support levels.

A sustained move below $1.30 would undermine the breakout and could leave traders who entered in anticipation of further gains exposed to a reversal. In that scenario, XRP could revisit the $1.30 to $1.32 area before attempting another recovery.

The $1.34 region is therefore particularly important in the near term. Its position around the 50% Fibonacci retracement makes price action there a key reference point for traders assessing whether the current advance can continue. Fibonacci retracement levels, derived from the mathematical sequence, are widely used in technical analysis to identify potential support and resistance zones based on prior price swings.

Broader economic data could also influence XRP's direction. Investors are watching upcoming employment figures and inflation developments as they reassess expectations for Federal Reserve policy. Stronger-than-expected economic data could reinforce expectations for tighter monetary conditions, potentially weighing on cryptocurrencies and other risk-sensitive assets.

For now, XRP's gains are supported by higher trading volume, improving momentum, more favorable interest-rate expectations, and stronger demand across the altcoin market. Holding the $1.30 to $1.35 support zone would keep $1.44, $1.55, and ultimately $2 in focus. A loss of that support, however, would weaken the current bullish setup.

Writer: Marcus Renfield, Crypto Market Analyst & Onchain Writer. Marcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.