XRP’s Bullish Surge: Analyzing the Potential for a Pullback and What Lies Ahead

XRP has recently delivered an impressive 43% gain in just 30 days, culminating on July 29, 2025. However, seasoned investors are well aware that even the most robust rallies often experience pauses or pullbacks. The critical questions now revolve not around whether a pullback will occur, but rather its timing, depth, and potential catalysts. One near-term risk is profit-taking, as on-chain data reveals that 78% of XRP's supply is currently held at a profit. Additionally, macroeconomic factors, particularly Federal Reserve policies, add another LAYER of uncertainty to XRP's near-term trajectory. This article delves into these factors, providing investors with the insights they need to navigate the potential volatility ahead.

Is an XRP Pullback on the Horizon? Here's What Investors Need to Know

XRP delivered a striking 43% gain in just 30 days, ending July 29, but seasoned investors recognize that even robust rallies pause. The critical questions now revolve around the timing, depth, and catalysts for a potential pullback—not its inevitability.

Profit-taking looms as a near-term risk, with on-chain data revealing 78% of XRP supply held at a profit. Macro liquidity adds another layer of uncertainty, as Federal Reserve rate cuts remain contentious and global money supply growth showed weakness in June. These factors could temper momentum without undermining XRP's long-term thesis.

History suggests XRP dips often resemble buying opportunities rather than structural failures. The asset's summer surge, while impressive, faces natural headwinds—gravity always wins. Yet for strategic investors, volatility may unlock entry points rather than signal retreat.

XRP Trading Volume Plummets 47% Amid Price Uncertainty

XRP's trading volume has sharply declined from $78 billion earlier this year to just $41 billion, despite the cryptocurrency briefly touching seven-year highs above $3.60. The lack of sustained buying pressure raises concerns about its ability to maintain current price levels.

Technical analysts point to critical support zones between $2.15 and $2.30 if current buying interest fails to materialize. The market appears caught in equilibrium, with neither bulls nor bears establishing dominance—a condition reflected in dwindling volume that signals waning conviction among traders.

Notably, the recent price surge above $3 generated significantly less volume than previous rallies, suggesting tempered enthusiasm from institutional players. This divergence between price action and volume often precedes trend reversals in cryptocurrency markets.

XRP Breakout Targets $15 as Analyst Predicts Parabolic Rally

XRP appears poised for its most significant price surge in years, according to technical analyst CryptoInsightUK. The token's breakout from a six-year consolidation phase suggests potential upside targets between $8.70 and $15, with the July monthly close confirming underlying strength accumulated across multiple market cycles.

The analysis highlights XRP's rare technical alignment on monthly charts, including a sustained break above its 2018 all-time high. Historical patterns suggest the current Relative Strength Index (RSI) configuration—similar to the 2017 setup that preceded a 700% rally—could drive prices beyond $10 even under conservative projections. "This is just the start," the analyst noted, emphasizing the measured move's potential to reach $15.

XRP Shows Resilience Amid August 2025 Market Activity

XRP, historically subdued in August, is defying seasonal trends with bullish indicators emerging in 2025. Nearly 946 million tokens ($2.86B) flooded exchanges in a 17-day sell-off—the highest supply spike in eight months—as investors locked in profits post-all-time-high. Yet the retreat proved ephemeral.

"This is standard post-ATH behavior in a maturing market," observes Alexis Sirkia of Yellow Network. "The key difference? This rally rides on tangible utility—cross-border settlements and regulatory clarity—not speculation." Within days, buyers absorbed over 400 million XRP ($1.2B), signaling renewed conviction.

Glassnode data reveals exchange balances contracting rapidly after the temporary surge. The rebound underscores institutional recognition of XRP's payment infrastructure advancements, with macroeconomic and technical alignments suggesting August may finally shed its bearish stigma for the asset.

XRP Outperforms ETH in Trading Volume on Coinbase, Signaling Bullish Momentum

XRP has surged 400% over the past year, emerging as one of the top-performing large-cap cryptocurrencies. The rally stems from Ripple's strategic initiatives and a favorable resolution to its legal battle with the SEC.

Coinbase's Q2 2025 report reveals a surprising shift: XRP trading volume now contributes more to the exchange's revenue than Ethereum, albeit by a narrow 1% margin. This marks a significant milestone for the asset, which wasn't even individually tracked in previous reports.

The data underscores XRP's growing dominance among U.S. investors, combining strong price action with renewed institutional interest. As regulatory clouds dissipate, the cryptocurrency shows signs of breaking free from years of suppressed valuation.

Ripple CTO Reaffirms XRP's Core Role in Payment Infrastructure Despite Stablecoin Push

Ripple Labs Chief Technology Officer David Schwartz has underscored XRP's fundamental utility in cross-border payments, dismissing speculation that the company's new stablecoin RLUSD diminishes its importance. The digital asset remains the primary bridge currency for Ripple's payment network, with ledger activity directly correlated to demand.

Schwartz revealed XRP's transactional volume vastly outstrips other assets in Ripple's ecosystem, though specific metrics weren't disclosed. The token's embedded functionality in the XRP Ledger creates an inherent demand mechanism—increased network usage naturally elevates its valuation through utility-driven adoption.