What to Know:

• XRP recovered from a midday low, closing near $2.84 as institutional investments have absorbed selling pressure.
• Recent data indicates that institutional investors have acquired 340 million XRP tokens despite market fluctuations.
• Upcoming regulatory decisions by the SEC regarding spot XRP ETFs are anticipated in October, likely impacting market dynamics.

XRP saw a pronounced decline after failing to maintain momentum above the $2.88–$2.89 resistance range, coinciding with growing ETF speculation as the October SEC deadline approaches.

News Background

• XRP fell by 4% from $2.88 to $2.84 on September 5 after reaching an intraday high of $2.89, evidencing some selling pressure from institutions.
• Trading volumes surged to 227.75 million during the midday hour, nearly quadrupling the 24-hour average of 58.40 million.
• Multiple asset management firms, including Grayscale and Bitwise, have filed for spot XRP ETFs with SEC’s decisions expected soon.
• The recent settlement between Ripple and the SEC has provided a clearer regulatory framework, leading to industry estimates suggesting an 87% likelihood of ETF approval.
• Technical analysts are drawing parallels between the current 47-day consolidation phase and XRP’s structure in 2017, which preceded a significant price rally.

Price Action Summary

• Over the 24-hour period from September 4 at 15:00 to September 5 at 14:00, XRP tradied within a narrow range of $0.10 (3.47%) between $2.78 and $2.89.
• The price increased from $2.84 to $2.89 on high volume around midday, before facing rejection at resistance.
• A concentrated 60-minute period from 13:26 to 14:25 saw a swift 4% drop from $2.88 to $2.84 with a volume of 10.6 million, breaching key supports at $2.86 and $2.85.
• XRP closed the session at $2.84, slightly above significant support levels near $2.77.

Technical Analysis

• Resistance: $2.88–$2.89 confirmed after repeated failed attempts to breakout.
• Support: Immediate levels at $2.84–$2.85, with stronger backing identified around $2.77.
• Pattern: The ongoing 47-day consolidation suggests potential for a breakout; price targets of $4.63–$13 have been identified if the structure resolves upwards.
• Momentum Indicators: RSI is positioned in the mid-50s suggesting a neutral bias, while MACD histogram is moving towards a bullish crossover.
• Volume Dynamics: Peak volume of 227.75 million against an average of 58.40 million indicates institutional distribution activity.

What Traders Are Watching

• The sustainability of $2.77 as a key support level heading into September.
• Potential bullish triggers from SEC’s ETF rulings in October regarding spot XRP.
• Continued accumulation by large holders despite short-term distribution signals (340 million tokens recently acquired).
• Possibility of a breakout above $3.30, which analysts believe could pave the way towards prices exceeding $4.