XRP is showing renewed strength after breaking out of a prolonged downtrend, with rising network activity and growing institutional interest supporting the recovery. As the token continues its rebound, buyers now face a series of resistance levels on the way toward the $2 mark.

At the time of writing, XRP is trading at $1.42, up 1.72% over the past 24 hours, according to CoinGecko. The token's 24-hour trading volume stands at $6.74 billion, while its market capitalization is $89.18 billion, representing 3.34% of the overall crypto market.

XRP Reclaims the Key $1.50 Area

XRP recently recovered after falling from its all-time high of $3.65 to roughly $0.99, as noted in a recent post by Crypto Patel. The move back into the $1.45-$1.50 range marked a significant shift in the token's price structure and restored its position among the largest cryptocurrencies by market capitalization.

During the market-wide flash crash on August 22, when heavy liquidations pushed the prices of many digital assets lower, XRP retained its appeal and quickly attracted buyers despite the selling pressure.

Network activity has also shown a positive development: the number of active addresses on the XRP Ledger reportedly increased by 659%, crossing the 300,000 threshold over three days. The XRP Ledger, the blockchain on which XRP trades, is used for payments and asset transfers, and shifts in address activity are one way observers gauge on-chain usage.

Risk of a Drop Below $1.36

Institutional interest in XRP is becoming increasingly evident as well. Goldman Sachs reportedly disclosed $86.5 million in exposure to XRP through five spot XRP ETFs during the second quarter, a development indicating that the financial institution's exposure has increased over the period. Spot XRP ETFs, which hold the underlying token directly, have given traditional financial institutions a regulated route to XRP exposure, and disclosure filings such as these offer one of the few public windows into that demand.

From a technical perspective, the $1.65-$1.70 region is the next major resistance area, as outlined in TradingView analysis. A sustained daily close above $1.70 could strengthen the recovery and bring the psychological $2 level within reach.

However, XRP still faces downside risks. The $1.36-$1.40 zone remains an important support area, and losing this range could weaken the current recovery and expose the token to a move toward $1.00. Broader market conditions, selling pressure, and developments surrounding the CLARITY Act could also influence the next major move. The CLARITY Act is proposed U.S. legislation aimed at clarifying how digital assets are regulated and which tokens fall under securities versus commodities oversight, an issue that has long weighed on XRP given its years of regulatory scrutiny in the United States.

For now, the key question is whether XRP can turn the $1.55 level into support and then break through $1.65-$1.70. If buyers clear those barriers, the recovery could gain further momentum; a failure to hold current support would signal that the recent rally still needs stronger confirmation.

This article contains market analysis and price references. These are not guarantees. Crypto markets are volatile. Always do your own research. Not financial advice.