XRP Price Breaks 3% Higher, Will the Rally Sustain This Week?
2025-08-05
After a volatile fortnight marked by a major correction, XRP price today has surged over 3%, reclaiming the $3.05 level.
This upward move marks a critical rebound after XRP plummeted from its new all-time high of $3.65 to a low of $2.77, largely in response to Bitcoin’s retreat to $111,000 and broader market exhaustion.
Source: TradingView
But the big question remains… will the rally hold, or is this just a temporary bounce?
Read Also: XRP News Today: Ripple Moves 200M XRP as Bulls Eye $4 Target Amid Market Jitters
XRP Rally: What's Fueling the Upside?
Monday's price action offered a much-needed boost for XRP bulls. Despite global macro uncertainty, XRP posted a 5.5% daily uptick, reviving investor optimism.
According to crypto analyst Mihir (@RhythmicAnalyst), the token is still trading within a long-term ascending channel on the 1-day chart, and a close above the psychological $3.10 mark could signal the continuation of this XRP rally.
Backing this narrative is a notable increase in derivative market activity. Open Interest in XRP futures climbed 4% to $7.5 billion, hinting at growing speculative interest.
Meanwhile, on-chain indicators show that XRP whales continue to accumulate, pushing Chaikin Money Flow (CMF) to a healthy 0.15.
XRP Prediction August 2025: $5 in Sight?
Looking ahead, XRP prediction for August 2025 points to cautious optimism. Analysts believe that as long as XRP remains above the key support zone between $1.98 and $2.60, the path to $5 remains valid. However, there are hurdles along the way.
Spot trading volume is currently down, ranging between $5–6 billion, roughly half the levels seen during mid-July’s euphoric rally.
To sustain upward movement, XRP would need not just technical momentum, but also a revival in spot buying activity and broader market confidence.
Read Also: Can Ripple’s Valuation Push XRP to $5?
The Bearish Undercurrent: MVRV Death Cross
Not all indicators are flashing green. Analyst Ali Martinez recently flagged a “death cross” on XRP’s Market Value to Realized Value (MVRV) Ratio.
Historically, this has signaled a potential deeper correction ahead. The MVRV ratio falling below its 200-day moving average suggests many investors are currently in unrealized loss territory, a bearish signal that can't be ignored.
Despite this, XRP's ability to bounce off the $2.80 support and regain the 21-day EMA, aided by an RSI dip below 46, offers technical hope. The next resistance level sits at $2.96, and a strong close above $3.10 could reignite buying momentum.
Ethereum-Compatible EVM Sidechain: A Game Changer?
Beyond price action, Ripple is playing a long-term strategic game. Its recent launch of an Ethereum Virtual Machine (EVM) sidechain on the XRPL mainnet gives developers full Ethereum compatibility, making it easier to build dApps on XRP’s network using familiar tools.
This EVM integration is not just technical fluff, it’s a developer magnet. With Ethereum boasting nearly 6,000 monthly devs and XRP around 2,800, even a small migration of talent could dramatically expand XRPL’s ecosystem.
Developer activity strongly correlates with blockchain value creation, and XRP is now in a better position to compete.
Ripple CTO David Schwartz’s recent announcement of launching a high-quality validator hub only strengthens this narrative. More robust infrastructure translates to increased resilience and efficiency, key to attracting serious institutional players.
Read Also: Hold 500 XRP? You Could Make 3015% If This Happens!
XRP Price Today: Key Metrics
XRP's market cap of $177 billion makes a quick leap to $10 per coin unlikely. Hitting that target would require a total valuation of nearly $590 billion, more than triple its current size and beyond Ethereum’s current market dominance.
Source: Cryptorank
Conclusion: A Rally with Cautious Optimism
While today's XRP 3% surge suggests renewed enthusiasm, traders should remain vigilant. Technicals point to a possible continuation toward $4, especially if XRP breaks $3.10 with volume.
But bearish indicators like the MVRV death cross and subdued spot volumes signal that the rally might not go unchallenged.
That said, Ripple’s focus on building infrastructure, expanding developer support, and improving utility sets the stage for a stronger long-term growth story, regardless of short-term volatility.
Want to stay informed on the latest XRP developments, price trends, and crypto opportunities? Keep up with the market on the Bitrue blog, your hub for real-time updates and expert insights in the crypto space.
FAQ
What is the XRP price today?
As of writing, XRP is trading around $2.99 to $3.05, reflecting a 3% daily surge.
Why did XRP price go up today?
The rally is attributed to a bounce from technical support zones, renewed market sentiment, increased derivatives interest, and whale accumulation.
What is the XRP prediction for August 2025?
Analysts foresee a potential move to $4–$5 if XRP breaks above $3.10 and maintains volume. However, MVRV indicators warn of a possible correction.
What’s limiting XRP from hitting $10 soon?
To reach $10, XRP’s market cap would need to exceed $590 billion, a feat unlikely without substantial institutional demand and reduced supply.
How does the EVM sidechain affect XRP’s price?
The Ethereum-compatible sidechain opens XRP to more developers, apps, and use cases, providing long-term bullish momentum for the ecosystem and token utility.
Disclaimer: The content of this article does not constitute financial or investment advice.
