XRP Stabilizes Above $2.82 Following 4% Decline Amid Institutional Selling
XRP faced a 4% decline after failing to maintain levels above $2.88–$2.89 due to institutional selling. Heavy trading volume confirmed this resistance, while buyers emerged around the $2.81–$2.83 range, stabilizing prices.
News Background
- Six institutional asset managers have submitted spot XRP ETF applications, with SEC decisions anticipated in October.
- Whale accumulation continues with approximately 340 million tokens bought recently amid volatility.
- Exchange balances exceed 3.5 billion XRP, raising concerns about potential supply pressure if sales resume.
- Federal Reserve policy changes and inflation are impacting liquidity conditions for risk assets.
- Previous attempts to break higher involved 227.7 million tokens traded near $2.88–$2.89, establishing firm resistance.
Price Action Summary
- XRP fluctuated within a $0.08 range from $2.81 to $2.89, indicating 3% volatility.
- The most significant drop occurred at 14:00 on Sept 5, falling from $2.88 to $2.81 on nearly 280 million tokens traded.
- Post-decline stabilization saw consolidation between $2.82 and $2.83 on reduced volume.
- Closing price at $2.82 kept XRP above the $2.77 support pivot, regarded as a crucial downside threshold.
Technical Analysis
- Support: Strong bid noted at $2.77–$2.81 following repeated defenses.
- Resistance: Immediate ceiling is at $2.88–$2.89, with $3.00 as a psychological level and $3.30 as the breakout threshold.
- Indicators: RSI is in the mid-50s, indicating a neutral-to-bullish bias.
- MACD histogram is nearing a bullish crossover, suggesting a possible momentum shift if volume increases.
- Structure: Ongoing consolidation under $3.00; a close above $3.30 may lead to $4.00+ potential.
What Traders Are Watching
- Whether $2.77 will hold as a critical support level if selling resumes.
- Price behavior during retests of the $2.88–$2.89 resistance, especially if volume exceeds daily averages.
- Impact of whale accumulation against high exchange balances, indicating latent supply risk.
- October SEC decisions on spot XRP ETFs as a crucial factor for institutional adoption.
- Macro influences from Fed policy and inflation data that could affect flows across digital assets.