XRP Reclaims $3 After Weekend Shakeout; Traders Target $4 Amid ETF Speculation

XRP Reclaims $3 After Weekend Shakeout; Traders Target $4 Amid ETF Speculation

XRP ($XRP$) Surged back above the critical $3.00 Psychological level during Sunday’s trading session, staging a strong recovery from a weekend sell-off that cleared out described positions. With on-chain data showing significant accumulation and a series of potential catalysts on the horizon, traders are now eyeing a test of higher resistance levels with a potential breakout toward the $4.00 Mark.

A Weekend of Volatility Establishments New Support

The asset experienced a volatile weekend, breaking down to a low of $2.95 On Saturday. This “flushout” occurred on exceptional high volume, with 122 million XRP changing hands—three times the recent average. However, buyers stepped in aggressively at this level, avoiding the selling pressure and establishing a robust new support base.

The subsequent recovery during the Asian trading session saw XRP decisively reclaim the $3.00 Handle, flipping a level that had acted as resistance back into support. This price action is typical of a market shakeout, where weaker, over-leveraged hands are forced out before a potential move higher.

Institutional Narratives and On-Chain Flows

Fueling the bullish sentiment are several key off-chain developments and supportive on-chain metrics. The market is intensely focused on the seven pending spot XRP ETF applications in the US, which have decision windows in October. Traders are framing these increasing rules as “binary” events that could unlock significant institutional capital. The narrative of institutional adoption is further supported by news from Japan, where Ripple partner SBI recently expanded its XRP-linked corporate lending program.

This positive sentiment is reflected in wallet activity. Over the past week, on-chain data shows a net flow of over 160 million XRP Into accumulation walls, indicating that large holders have been using the recent price volatility to increase their positions.

Technical Outlook: The Path to $4

With support now formally established at $2.95Analysts are looking at the next major technical hurdles. The immediate resistance zone is seen between $3.10 And $3.30. According to technical analyses, a sustained break above $3.30 Would validate a large-scale inverse head-and-shoulders pattern, a classic bullish reverse formation. Such a breakout would open up technical price targets in the $4.20 To $4.80 Range.

The market’s ability to agree above $3.00 Will be the first test of this renewed momentum. The primary focus for traders in the coming weeks will be the key resistance at $3.30, a level that stands between the current price and a potential rally towards the psychologically significant $4.00 Milestone.