XRP Faces Resistance Above $3 Amid Heavy Selling Pressure
XRP faced challenges maintaining momentum above $3.00 on September 9–10 due to significant institutional selling, which erased early gains. The asset peaked at $3.035 but closed at $2.94 after a sell-off.
Key Facts
- Resistance noted near $3.02 despite ETF catalysts and rising exchange reserves.
- Federal Reserve’s meeting on September 17 may yield a 25-basis-point rate cut, potentially boosting liquidity for risk assets.
- Six XRP spot ETF applications are pending SEC review in October, critical for institutional adoption.
- Exchange custody balances for XRP reached a 12-month high, raising concerns about selling pressure amid whale accumulation.
- Market structure testing at the $3.00 barrier mirrors July breakout failure.
Price Action Summary
- XRP traded between $2.935 and $3.035, a range of $0.10 (2.9%), from September 9 at 03:00 to September 10 at 02:00.
- Following a rejection near $3.02, a 14:00 sell-off dropped XRP from $3.018 to $2.956 on high volume of 165.67M.
- Price consolidated between $2.94 and $2.96 with average volume of 650k per minute.
Technical Analysis
- Resistance levels capped upside at $3.02–$3.04 with multiple rejections.
- Support at $2.94 tested and held, indicating possible institutional accumulation.
- RSI shows early bullish divergence, although high exchange reserves may limit momentum.
- Current market structure suggests consolidation within $2.94–$3.00 unless volume increases.
- Intraday swings of 3% reflect volatility driven by institutional activity.
Traders' Focus
- Sustaining closes above $2.95 is crucial for a potential breakout at $3.02.
- Monitoring exchange custody balances — will inflows lead to increased selling pressure?
- Octobers’ SEC ETF rulings could serve as a structural catalyst if approvals occur.
- The impact of the Fed's rate cut decision on dollar liquidity is under observation.
- Recent accumulation of 340M tokens by whales — will this offset selling from exchanges?