Seeing "trace" (or the bullet flying) with a 22lr doesn't require a nice scope. I see bullets fly whenever the light conditions and background are conducive. I have seen consistently in glass as lowly as a Midas Tac 4-16 and a Strike eagle 5-25.
The XTR3 is good enough to see trace in most conditions at centerfire distances. It is a damn nice scope for the money.
Seeing trace with a 22 mostly has to do with knowing what to look for, where to look, and when to look. Once you become accustomed to the timing, and where to pick up the shot visually in the flight path, you can follow it to the target.
With a 22, shooting around 100 yards makes the time of flight long enough, and the parabola tall enough to pick it up. At 100 yards the max ordinate is still fairly close to the center of the scope so you can pick up trace even when focusing on the target. The same is true at 400-500 yards with most prs centerfire cartridges. Once you start to see it, it becomes easier to find it on farther, higher max ordinate shots.