XRP’s Bullish Pattern Emerges, But Bear Pressure Persists

TL;DR

• XRP’s inverse head and shoulders pattern failed, leaving sellers  in control near the $3.10 resistance.
• Active addresses dropped to 38,303 in late August, reflecting weak network support behind price moves.
• Analyst fractal points to $4.30 breakout, but sustainability is questioned without stronger on-chain activity.

Price Pattern Shows Reversal Setup, But Momentum Fades

XRP recently formed an inverse head and shoulders pattern, a structure that often suggests a possible change in trend. The pattern was visible toward the end of July, with the price attempting to break higher. While the setup pointed to a potential reversal, the move stalled shortly after.

BitGuru noted that the pattern failed to gain traction.

The weak breakout left the market open for renewed selling, keeping price movement within a broader downtrend that has been in place since late July.

Notably, the $3.10 zone has been a consistent resistance level for several weeks. XRP has approached this price multiple times throughout August, but each attempt has been met with selling. None of the rallies managed to stay above it for long.

Current market behavior shows hesitation around the same area. Without a strong close above $3.10, supported by buying volume, the market appears to favor the downside. XRP is trading near $3.00, reflecting limited movement over the past day and modest gains for the week.

Network Activity Tracks Lower

Data from Glassnode shows that XRP’s network usage has declined. As of August 27, the number of active addresses was 38,303. This drop in activity has come despite recent moves in price, which suggests lower engagement from users.

Earlier in the year, especially in June, active addresses saw spikes well above 500,000. That trend has not continued. Since late July, the numbers have been steady but low, even as XRP reached the $3.40 range in early August. A healthy move up is often supported by growing network use, but that support isn’t visible here.

Market Watching Possible Repeat Structure

Another view came from Gordon, who pointed to a familiar pattern forming. He posted that the “$XRP fractal [is] looking strong,” adding that “the pump will shock many.” The price is now targeting $4.30, which would mark a new record.

However, this setup is similar to previous XRP moves that followed long periods of consolidation. Still, without stronger network signals or a sustained hold above key levels, questions around the move remain.