XRP surged by 3% after Federal Reserve Chair Jerome Powell emphasized the potential for a September rate cut on Friday, leading to a rise in Bitcoin (BTC) and other major cryptocurrencies.
A selloff of 470 million tokens caused volume spikes and significant resistance around $2.92, while delays in ETF approvals and low security ratings added to the bearish sentiment.
News Overview
• Trading activity was led by institutional liquidations as 470 million XRP were traded on major exchanges from Aug. 21 to Aug. 22, resulting in a notable selloff.
• On-chain settlement volumes increased by 500%, reaching 844 million tokens on Aug. 18, a significant spike indicating growth in adoption amid market fluctuations.
• The SEC has delayed decisions on XRP ETF applications, including Nasdaq’s CoinShares proposal, now anticipated in October, contributing to regulatory uncertainty.
• A recent security analysis ranked XRPL at the bottom among 15 blockchains, raising concerns about network stability and fueling bearish trends.
Price Movement Summary
• XRP fell by 3.1% over the 24-hour period from Aug. 21 at 13:00 to Aug. 22 at 12:00, dropping from $2.89 to $2.80.
• The token registered a range of $0.12, showcasing a 4.25% volatility band, between a high of $2.92 and a low of $2.80.
• A significant decline occurred at 19:00 on Aug. 21 when XRP faced rejection at $2.92 with a volume of 69.1M, marking strong resistance.
• In the final trading hour (Aug. 22 between 11:24 and 12:23), XRP decreased by 2.5% from $2.82 to $2.80 on a notable volume of 7.2M, confirming a continuation of bearish momentum.
• Support levels appeared around $2.80 to $2.85, although interest in accumulation diminished with each retest.
Technical Analysis
• Resistance solidified at $2.92 following a rejection at 69.1M volume.
• Support identified in the $2.80–$2.85 area, albeit weakening with repeated tests.
• A volume spike to 96M at 11:00 on Aug. 22 validated bearish follow-through.
• A trading range of $0.12 (4.25%) indicates concentrated volatility.
• The final hour selloff of 2.5% with 7.2M volume confirmed a bearish continuation.
What Traders Are Monitoring
• The ability of $2.80 to hold as support; a breach could lead to a rapid decline towards $2.75.
• Developments related to ETFs, with decisions in October crucial for broader institutional investment.
• Patterns of whale accumulation — while on-chain adoption is increasing, prices are not reflecting fundamental values.
• The resistance zone of $2.92–$3.00 as a potential catalyst for a bullish turnaround.
