XRP became one of the shining stars in the crypto market in July. Reaching a new high of $3.66 with a strong rally, the altcoin slid as low as $3, followed by an expected profit realization and correction. While historically August has been known as a challenging and low-volume period for XRP, this year market data and investor behavior paint a different picture. Both technical indicators and on-chain data suggest that XRP has potential for a rebound in the short and medium term.

XRP, which has gained nearly 30% in value over the past month, saw intense profit realization on exchanges with $2.86 billion in sales over a two-and-a-half-week period as of the end of July. Around 946 million XRP moved to exchanges during this period, and supply rose to the highest level in the last eight months. However, the selling pressure was short-lived; only a week later, investors reclaimed 400 million XRP, valued at over $1.2 billion. This rapid buying reaction shows that market confidence is maintained and investors maintain bullish expectation.

Technical Indicators and On-Chain Signals

XRP's Network Value/Trading Volume (NVT) ratio has fallen to its lowest level in five months. This situation reveals that the network valuation has not yet exceeded the trading volume and the crypto asset has not overheated. The low NVT rate indicates that the price is moving based on healthy fundamentals, without a speculative bubble.

Hanging below the $3 critical support level, XRP is trading around 19% away from its peak. However, the current technical outlook indicates that the market has the necessary conditions for a possible recovery movement. The strong buying movements observed in the on-chain analysis, the increase in the number of active wallets and the stock market exits support that the market may re-enter an upward trend.

Investor Sentiment and Institutional Impact

The rapid buyback following the sell-off at the end of July marks a dramatic improvement in investor sentiment. The fact that institutional investors maintain their positions and retail investors behave aggressively in the direction of repurchases strengthen the fundamentals of the XRP market. This chart shows that XRP is maintaining market momentum despite the typical summer recession.

XRP's rise this time is not based on a speculative rally, but on strong fundamentals such as cross-border payments, blockchain infrastructure projects, and regulatory compliance. This increases the attractiveness of the asset for long-term investors. The current environment, in which the risk rotation of funds continues and the regulatory framework in the crypto market is increasingly clear, supports the stable growth of XRP.

Macro Outlook and August Expectations

Volatility in global markets, interest rate expectations and risk appetite influence the short-term movements of crypto markets. But with XRP in particular, on-chain data flow and corporate interest remain strong. The low NVT rate and strong stock market outflows suggest that the price may start an upward movement again in August. Closures above $3, in particular, can create new momentum technically.

According to experts, this month of August could reverse the classic summer recession for XRP. Market dynamics, investor confidence and continued institutional interest could see the asset approach the $3.66 peak again. If macro conditions remain supportive, this period could lay the foundation for a long-term uptrend for XRP.