In the realm of digital assets, XRP’s recent performance has caught the attention of traders and analysts alike. The cryptocurrency, known for its rapid price movements and institutional interest, has seen a notable 4% increase amid a flurry of trading activity and speculation around potential Federal Reserve actions. As XRP teeters near the $3.00 mark, market participants are keenly observing upcoming macroeconomic events and regulatory rulings that could shape its trajectory.
XRP’s Ascent and Market Dynamics
Over the last trading session, XRP surged from $2.89 to an intraday high of $2.995 before settling at $2.95. This climb was accompanied by a significant volume spike, with activity reaching 159.63 million at its peak—nearly three times the daily average. Such explosive trading volumes often signal heightened institutional involvement, and this instance was no exception. Despite this upward momentum, XRP faced persistent resistance just shy of $3.00, highlighting the influence of institutional flows on short-term price ranges.
The $2.88 to $2.89 support zone has proven resilient, attracting buyers consistently. Still, the repeated inability to break past the $2.995 to $3.00 resistance underscores the cautious stance many traders are adopting. As the digital asset consolidates, its momentum indicators, such as the RSI and MACD, suggest a neutral-to-bullish outlook. The RSI remains steady in the mid-50s, while the MACD histogram is converging towards a bullish crossover, hinting at potential accumulation.
Federal Reserve Speculations
A significant driver behind XRP’s recent rally is the speculation surrounding the Federal Reserve’s upcoming meeting on September 17. Futures markets are now pricing in a 99% probability of a 25-basis-point rate cut. Such monetary easing tends to weaken the US dollar, making cryptocurrencies an attractive alternative for investors seeking to hedge against currency devaluation.
However, while a 25-bps cut seems almost certain, any deviation from this expectation—such as a larger cut or a delay—could drastically alter crypto liquidity dynamics. Traders are bracing for potential volatility, as any surprise from the Fed could ripple through the crypto markets, affecting XRP and its peers.
Whale Movements and Exchange Activity
Adding another layer to the XRP narrative is the behavior of large holders, often referred to as “whales.” In a dramatic 15-minute window during the breakout, whales reportedly accumulated an estimated 10 million XRP, indicating strong interest from major players. This accumulation has coincided with a rise in exchange reserves to a 12-month high, suggesting increased supply on exchanges even as larger investors stockpile the asset.
Whale activity is a critical factor for traders, as these large transactions can significantly influence market prices. As the market gears up for potential ETF approvals, understanding whale behavior could provide insights into XRP’s future price movements.
Anticipation of SEC’s ETF Decisions
Looking ahead, XRP traders are closely monitoring the SEC’s review of six spot XRP ETF applications, with decisions expected in October. Among the applicants are notable names like Grayscale and Bitwise, whose potential approvals could transform institutional access to XRP. ETFs are seen as a gateway for traditional investors to enter the crypto space, and approval could significantly boost demand for XRP.
The anticipation surrounding these rulings adds another layer of complexity to the market. A positive decision could catalyze a significant repricing of XRP, as institutional investors gain a more straightforward route to acquiring the asset. Conversely, delays or rejections could dampen market sentiment and stall XRP’s upward momentum.
The Road Ahead
As XRP navigates these turbulent waters, traders are particularly focused on its ability to close above the critical $2.99 to $3.00 resistance zone. A decisive break and settlement above this level could flip resistance into support, paving the way for a potential rally towards $3.30 to $3.50. However, until such a breakout occurs, XRP is likely to remain confined within its current consolidation channel.
In summary, XRP’s recent performance is emblematic of the broader crypto market’s intersection with macroeconomic trends and regulatory developments. As the September 17 Fed meeting approaches and the SEC’s October rulings loom, traders will continue to navigate a landscape characterized by both opportunity and uncertainty. Whether XRP can sustain its upward momentum will largely depend on these external catalysts and the market’s ability to adapt to evolving conditions.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
