XRP surged to $1.31 on August 21, gaining 18% in 24 hours and 31% for the week, according to CoinGecko. Analyst Steph Is Crypto identified a technical setup on the two-week chart where XRP spent 28 days below the Gaussian channel indicator, matching a 2020 pattern that preceded a sharp rally. The token pushed above a key downward trend line from 2020 for the first time since 2024. Institutional demand rose through spot XRP ETF inflows and increased XRP Ledger activity. However, risks include slowing ETF inflows, resistance at $1.20–$1.35, overbought RSI readings, and the stalled CLARITY Act.
XRP reached $1.31 on August 21, marking an 18% gain in 24 hours and a 31% weekly increase, according to CoinGecko. The move follows a technical pattern analyst Steph Is Crypto identified on the two-week chart, where XRP spent 28 days below the Gaussian channel indicator, matching the exact duration from 2020 before a sharp upward turn.
The token pushed above a downward trend line first drawn in 2020 for the first time since 2024. Monica Long, President of Ripple, stated: “We’ve seen the veritable light switch flip.”
A gold-denominated version of that same setup tells a similar story, with each prior touch marking a bottom rather than a breakdown. Steph cautioned that XRP could still drop another 10 to 20 percent before a bottom is confirmed.
Institutional demand contributed to the rally, with quarterly filings showing increased allocations into spot XRP exchange traded funds. Net inflows into those products continued even as broader crypto markets stayed cautious.
On the XRP Ledger, transaction volume and active addresses both increased, while Ripple issued more of its RLUSD stablecoin and announced several new banking partnerships. The breakout caught short sellers off guard, and position covering added momentum to the rally.
Risks remain, however. Weekly inflows into spot XRP ETFs have dropped approximately 93% from their recent peak, and total assets under management fell below $1 billion.
The XRP price now approaches a resistance band between $1.20 and $1.35, where moving averages have previously capped rallies. RSI readings above 80 indicate overbought conditions on shorter timeframes, and the $1.00 to $1.05 support zone must hold.
The CLARITY Act, which would establish clearer federal crypto rules, has not advanced in the Senate. At writing, XRP traded at $1.31, below its 2021 high of $1.96 and 2025 high of $3.65.
A close above $1.35 would strengthen the bullish case, while a drop below $1.05 would raise doubts. The coming weeks will likely determine whether this move leads to a sustained rally or stalls at resistance.
