XRP pulled back after failing to sustain momentum above the $2.88–$2.89 resistance band, highlighting a tug-of-war between short-term distribution and ongoing institutional accumulation ahead of October ETF rulings.
During the 24-hour window to Sept. 5, XRP traded in a roughly $0.10 range between $2.78 and $2.89. An intraday surge pushed the token to a high of $2.89 before a concentrated slide erased gains: a 60-minute move from 13:26 to 14:25 saw a ~4% drop from $2.88 to $2.84 on about 10.6M of that session’s volume. Notably, trading volume spiked to a peak of 227.75M—nearly four times the 24-hour average of 58.40M—which market participants read as institutional distribution absorbing shorter-term bids.
Macro context is shaping market sentiment. Six asset managers, including firms such as Grayscale and Bitwise, have filed for spot XRP ETFs, with the SEC expected to rule in October. Ripple’s settlement with the SEC has materially reduced regulatory uncertainty, and some market estimates now price an ~87% chance of ETF approval—a development that could attract fresh institutional capital and deepen liquidity.
Technically, the immediate challenge remains the tested resistance zone at $2.88–$2.89. Support sits near $2.84–$2.85, with firmer backing at $2.77. Traders are watching whether the 47‑day consolidation resolves higher; analysts referencing similar structures in 2017 have flagged stretch targets between $4.63 and $13 if a sustainable breakout occurs. Momentum indicators currently show a neutral bias—RSI in the mid‑50s and a MACD histogram moving toward a bullish crossover—but those signals will need volume confirmation.
What to watch: whether $2.77 holds as decisive support, continuation of whale accumulation (roughly 340M tokens reportedly added), and a decisive break above $3.30 that could reopen paths toward $4+.
Risk note: Technical setups and ETF speculation can amplify volatility. Patterns from previous cycles are not guarantees—news-driven moves around SEC rulings and large-block flows can quickly alter the outlook. Always assess position size and time horizon before trading.
Source: CoinDesk. Read the original coverage for full details.