Recently, the XRP market performance has been remarkable. Although it has pulled back over 20% from the July high of $3.65, August still achieved an astonishing 387.7% rise, showing signs of short-term stabilization.

The market's focus is concentrated on several key factors. First, the direction of the Federal Reserve's monetary policy remains a key point of close attention for investors. Although the probability of a rate cut in September has decreased, if it is ultimately implemented, it may bring new momentum to risk assets, including cryptocurrencies.

Secondly, the SEC's lawsuit against Ripple has come to a conclusion, which undoubtedly removes the regulatory uncertainty that has long plagued the market for XRP. With the elimination of legal risks, investor confidence is expected to gradually recover.

Another potential positive factor is the progress of the XRP spot ETF application. If regulatory approval is obtained, it could attract a substantial amount of institutional funds into the XRP market, and this effect may be similar to the market performance after the approval of the Bitcoin ETF.

From a technical analysis perspective, XRP faces some short-term resistance, but the possibility of returning to historical highs cannot be ignored, driven by multiple favorable factors. However, investors should remain cautious and pay attention to market changes, weighing risks against opportunities.

Overall, the future trend of XRP will depend on the interplay of various factors, including the macroeconomic environment, regulatory attitudes, and market sentiment. In this rapidly changing cryptocurrency market, it is crucial to remain vigilant and continuously monitor market dynamics.