XRP Falls 4% After Rejection at $2.88 Amid ETF Speculation
XRP experienced a sharp pullback after failing to maintain momentum above the $2.88–$2.89 resistance zone amidst ongoing ETF speculation ahead of October SEC deadlines.
Key Points
- XRP declined 4% from $2.88 to $2.84 on September 5, following an intraday high of $2.89 due to institutional selling pressure.
- Trading volume surged to 227.75 million during the peak hour, nearly four times the 24-hour average of 58.40 million.
- Six asset managers have filed for spot XRP ETFs, with SEC decisions anticipated in October.
- Ripple's legal resolution with the SEC has increased ETF approval odds to 87%.
- Technical analysts are comparing the current consolidation pattern to XRP's structure in 2017, which preceded a major rally.
Price Movement
- XRP fluctuated within a $0.10 range (3.47%) between $2.78 and $2.89 during the session from September 4 at 15:00 to September 5 at 14:00.
- The asset rose from $2.84 to $2.89 before facing resistance.
- A decline of 4% occurred from $2.88 to $2.84 on 10.6M volume, breaching supports at $2.86 and $2.85.
- The closing price was $2.84, slightly above key support near $2.77.
Technical Analysis
- Resistance established at the $2.88–$2.89 zone after multiple failures to break through.
- Support is immediate at $2.84–$2.85, with stronger levels at $2.77.
- The ongoing 47-day consolidation may lead to breakout targets ranging between $4.63 and $13.
- RSI indicates a neutral bias in the mid-50s; MACD histogram shows potential for bullish crossover.
- Volume at its peak confirmed significant institutional distribution.
Traders’ Focus Areas
- Stability of $2.77 as a critical support level.
- SEC’s upcoming rulings on spot XRP ETFs, viewed as potentially bullish.
- Continued whale accumulation with 340M tokens added recently despite short-term selling pressure.
- Potential breakout above $3.30, which could signal pathways towards $4+.