XRP has taken a notable hit, slipping by 4% after failing to break through the $2.88 resistance mark amidst heightened speculation surrounding the upcoming SEC decisions on spot XRP ETFs. This recent price movement underscores a critical moment for the digital asset, as it contends with both institutional pressures and longstanding consolidation patterns that many believe could foreshadow a more substantial market shift.
Trading Volumes Surge Amid Price Pressure
On September 5, XRP experienced a sharp pullback, retreating from an intraday high of $2.89 to close at $2.84. This occurred during a trading session that saw volumes balloon to 227.75 million, nearly quadrupling the 24-hour average of 58.40 million. Such a surge in activity highlights the pronounced institutional selling pressure at play.
“The spike in volume suggests that larger players are reshuffling their positions ahead of the SEC’s ETF decisions,” noted crypto analyst Jamie Carter. “It’s a tug-of-war between those betting on a breakout and those capitalizing on current resistance.”
ETF Speculation and Legal Clarity Drive Market Sentiment
The backdrop to XRP’s recent volatility includes significant speculation about the potential approval of spot XRP ETFs. With six asset managers, including industry heavyweights like Grayscale and Bitwise, having filed applications, the SEC’s forthcoming rulings in October could be pivotal. Ripple’s recent legal settlement with the SEC has provided greater regulatory certainty, boosting market confidence in a favorable decision. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Industry estimates put the probability of approval at 87%, a sentiment echoed by many in the space. “The legal clarity from Ripple’s settlement has been a game changer,” remarked blockchain strategist Eliza Chen. “It paves the way for institutional investment, which could dramatically alter XRP’s landscape.”
Technical Patterns Hint at Possible Breakout
XRP has been trading within a narrow $0.10 range, between $2.78 and $2.89, over a 24-hour period, reflecting a 3.47% fluctuation. The asset’s recent price action, coupled with a 47-day consolidation pattern, has drawn comparisons to structural setups from 2017 that preceded a significant rally.
Technical indicators are painting an intriguing picture. Resistance around the $2.88–$2.89 zone has been validated by repeated failed breakouts. Meanwhile, immediate support hovers at $2.84–$2.85, with a stronger base at $2.77. The RSI stands in the mid-50s, indicating a neutral bias, while the MACD histogram suggests a potential bullish crossover.
“The market is watching for XRP to hold above $2.77,” explained technical analyst Morgan Liu. “Should it maintain this support and break $3.30, we could see pathways open towards $4 and beyond.”
Future Implications and Market Dynamics
As September unfolds, all eyes will be on the SEC’s ETF rulings, which many view as a potential catalyst for XRP’s next move. In addition, the continuation of whale accumulation — with 340 million tokens recently added — indicates underlying confidence in XRP’s longer-term prospects despite current distribution pressures. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Yet, the path forward is not without its hurdles. The cryptocurrency market remains inherently volatile, and any regulatory decisions or macroeconomic developments could sway investor sentiment rapidly. The question remains: Can XRP navigate these turbulent waters and achieve the breakout that technical strategists are eyeing?
For now, the market watches and waits, with traders poised to react to any shifts in the landscape. Whether XRP can capitalize on its current momentum and translate speculative optimism into tangible gains remains an open query — one that will unfold in the coming weeks as the SEC’s decisions draw near.
Source
This article is based on: XRP Drops 4% After $2.88 Rejection as ETF Speculation Builds
Further Reading
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- Shiba Inu (SHIB) Forms First 2025 Golden Cross, Whales Dumping XRP En Masse, Bitcoin (BTC) Rockets 1,530% in Liquidation Imbalance — Top Weekly Crypto News
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.
