XRP has once again found itself in choppy waters as it struggled to maintain its momentum above the critical $3.00 mark. Over the weekend of September 9–10, the cryptocurrency briefly touched $3.035, only to be dragged back down to $2.94 by a wave of institutional selling. This latest price action has left traders and analysts alike pondering the implications of the failed breakout and what might lie ahead for XRP.
The Battle for $3.00
XRP’s brief foray above $3.00 was met with swift resistance, as heavy selling pressure quickly erased early gains. Despite a promising start that saw XRP climbing to $3.035, the asset faced strong resistance around the $3.02 mark, a level that has become a formidable barrier. This resistance is not new, as XRP has struggled to maintain upward momentum around this price in the past.
The sell-off that followed was significant, with XRP’s price tumbling from $3.018 to $2.956 in a matter of hours, driven by a trading volume of 165.67 million—nearly three times the daily average. By the end of the trading session, XRP had consolidated between $2.94 and $2.96, with trading activity calming down to around 650,000 in volume per minute.
Market Dynamics and Resistance Levels
The rejection near $3.02 highlights the mounting resistance XRP faces at this level. Analysts are drawing parallels to XRP’s failed breakout attempt in July, suggesting that the market structure is once again being tested at the $3.00 threshold. The current setup indicates a potential consolidation phase within the $2.94–$3.00 range unless a significant volume surge occurs.
Technical indicators paint a mixed picture. While there is early bullish divergence in the Relative Strength Index (RSI), exchange reserves for XRP have reached a 12-month high. This accumulation suggests that while some investors are buying, others are preparing for potential selling pressure.
Broader Market Influences
The broader market context also plays a crucial role in XRP’s price action. The Federal Reserve’s upcoming meeting on September 17 is expected to result in a 25-basis-point rate cut, an outcome the markets view as nearly certain. This decision could inject liquidity into risk assets like cryptocurrencies, potentially influencing XRP’s price movements.
Additionally, all eyes are on the U.S. Securities and Exchange Commission (SEC), which is set to review six XRP spot ETF applications in October. If approved, these ETFs could pave the way for increased institutional adoption of XRP, providing a much-needed bullish catalyst.
However, the high exchange custody balances for XRP are a cause for concern. While whales have accumulated approximately 340 million tokens in recent weeks, the elevated reserves may indicate impending selling pressure, which could hinder any upward momentum.
What Traders Are Watching
Traders are closely monitoring whether XRP can sustain its price above $2.95, a level seen as critical for building the momentum needed to challenge the $3.02 resistance. The high exchange custody balances are a double-edged sword: they could either convert into sustained selling pressure or mark a consolidation phase before a potential breakout.
The upcoming SEC ETF rulings are also pivotal. A favorable decision could act as a structural catalyst, potentially propelling XRP past its current resistance zones. On the other hand, a negative outcome may reinforce the existing barriers.
Furthermore, the anticipated rate cut by the Federal Reserve has traders positioning themselves for its impact on dollar liquidity, which could indirectly affect XRP’s price dynamics.
The Road Ahead
As XRP navigates these turbulent waters, the cryptocurrency community remains divided on its near-term prospects. While some see the current consolidation as a prelude to a significant breakout, others caution that the high exchange reserves and looming resistance levels could lead to further volatility.
Ultimately, XRP’s ability to rise above the $3.00 threshold will depend on a confluence of factors, including market sentiment, regulatory developments, and macroeconomic conditions. As traders and analysts keep a close eye on these variables, the coming weeks could prove decisive for XRP’s trajectory in the ever-evolving cryptocurrency landscape.
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.
