XRP's Price Direction Hinges on Reclaiming Key Technical Indicator
XRP had a remarkable August in 2026, rising 28.5% and marking its best performance since 2021.
The token's surge came in the final two weeks of the month, with XRP jumping from $1.00 to $1.70 in just three trading sessions.
However, most of these gains evaporated after the sudden move, and XRP spent six sessions trading within a narrow range before falling further.
Currently, XRP trades near $1.33, about 20% below its late-August high.
The Anchored Volume-Weighted Average Price (AVWAP) indicator has stopped rising, which could have significant implications for XRP's next price direction.
XRP's AVWAP climbed during the first week after a breakout that started the recent rally, showing that the average buyer still had a price cushion.
However, the swing AVWAP has now flattened at $1.392, and XRP has fallen below this level, meaning the average buyer from the August breakout now holds an unrealized loss.