XRP, the token tied to Ripple's cross-border payments network and one of the largest cryptocurrencies by market capitalisation, was trading near $1.004 on August 17, having moved between roughly $0.987 and $1.006 during the daily session. The bounce brought the price into contact with a descending trend line that has limited recovery attempts since late July, and that line now represents the immediate technical test for the token.

Testing $1, Not Reversing the Downtrend

XRP has reached the trend line but has not yet confirmed a daily close above it. Until such a close occurs, the move is better read as a stabilisation attempt than a breakout. A descending trend line is drawn across the highs of a decline, and each contact that ends without a decisive break reinforces its role as resistance.

The broader chart remains weak. The 50-day simple moving average sits near $1.075, the 100-day SMA around $1.16, and the 200-day SMA near $1.28 — all above the current price. Simple moving averages, which average daily closes over a fixed window, are widely watched as dynamic reference levels, and having all three sit above the price is the typical configuration of a sustained downtrend. The 50-day average is the first active technical barrier, while the higher averages become relevant only if XRP can recover further.

Futures Account for Most of the Current Trading

Data from CoinGlass shows about $1.23 billion in XRP futures volume over 24 hours at the time of writing, compared with roughly $152.9 million in spot volume, meaning futures turnover was about eight times larger than spot turnover. Open interest stood near $2.77 billion.

These figures describe the mix of market activity, not its direction. Futures are contracts that commit a trader to buy or sell at an agreed price at a later date, usually with leverage, while open interest measures the value of contracts that have not yet been closed or settled. Futures volume does not reveal whether buyers or sellers are in control, and open interest does not identify whether the outstanding positions are mainly long or short. Derivatives-heavy turnover is common across major crypto markets, where futures activity often exceeds spot, so the imbalance itself is not an anomaly; what it shows here is that XRP is being traded heavily through derivatives while it tests $1, which could make a break of the current range less orderly if a large number of positions are closed or liquidated.

What Would Improve the Chart?

Price needs to hold above the latest low. The intraday low near $0.987 is the immediate level to watch. A wick below it would not settle the issue on its own, but a daily close beneath it, followed by a failed attempt to recover $1, would show that the current stabilisation attempt has failed. The daily chart does not show a clearly tested support zone directly below the current range, so it would be more accurate to wait for fresh price action than to assign a precise downside target now.

XRP needs to reclaim $1.02–$1.04. The trend line is the first obstacle, but the $1.02–$1.04 area carries more weight because it contains several recent daily highs. A close above that range, followed by a successful retest, would be the first condition for a higher-low and higher-high sequence. A brief intraday move above the line would not be enough.

The 50-day SMA is the larger test. The 50-day SMA near $1.075 is the next level that matters. A recovery above it would not reverse XRP's wider decline, but it would show that the price has moved above its nearest falling average. The current daily volume has not expanded to the levels seen during the larger swings in June and July. The session is still open, so that can change, but at the time of the chart the bounce lacked a comparable expansion in volume.

The Read From Here

XRP is at the bottom of its recent range, where even a small move can look more important than it is. The chart will improve only if the price holds above $1, closes through $1.02–$1.04, and then tests the 50-day SMA near $1.075.

The derivatives data adds context rather than a prediction. It shows that traders are active around the level, so the first break may be volatile. The daily close and the follow-through after it will matter more than the initial move.

Cryptocurrency prices are highly volatile. Technical levels are based on the daily chart from TradingView, and derivatives data can change rapidly. This article is for informational purposes only and does not constitute investment advice.

Source: Coindoo