XRP experienced significant fluctuations during the trading period of August 25–26, dropping from $3.01 to $2.91, marking a 3.2% decline. A wave of institutional sell-offs between 19:00–20:00 GMT triggered the largest decrease, with trading volumes tripling the daily average. Efforts to recover towards the end of the session managed to lift the token back above $2.90, but market sentiment remains divided on the potential for sustained upward movement.
News Background
- XRP has been highly volatile throughout August, with consistent rejections above $3.00.
- Whale movements and institutional activity have contributed to short-term fluctuations, intensifying pressure on retail investors.
- Wider cryptocurrency indexes have shown more stable gains, leaving XRP lagging behind its counterparts amid ongoing regulatory concerns in the U.S.
- Crypto exchange Gemini, co-founded by Cameron and Tyler Winklevoss, announced a collaboration with Ripple to introduce an XRP-themed credit card in partnership with WebBank.
- The card offers up to 4% cashback in XRP on fuel, EV charging, and rideshare, 3% on dining, 2% on groceries, and 1% on other purchases. Gemini is also engaging with selected merchants for up to 10% back on eligible purchases.
Price Action Summary
- XRP fell 3.24% from $3.01 to $2.91 within 24 hours, experiencing a $0.28 range (9% volatility).
- Peak selling transpired between 19:00–20:00 GMT as XRP dropped from $2.96 to $2.84 on a volume of 217.58 million, significantly surpassing the 72.45 million daily average.
- The token saw a 0.69% rebound in the final hour of trading, rising from $2.89 to $2.91 with institutional flows averaging 641,000 per minute.
Technical Analysis
- Resistance identified at $2.96, coinciding with rejection at the upper Bollinger Band.
- Support established at $2.84–$2.86, aligning with the 20-day moving average area.
- The intraday floor at $2.89 indicates accumulation, and RSI has improved from oversold levels near 42 to the mid-50s, indicating stabilizing momentum.
- The MACD histogram is narrowing towards a bullish crossover, hinting at a potential shift in the short-term trend.
- Sustained trading above $2.90 is crucial to pave the way towards $3.20–$3.30, while a break below $2.84 could lead to a decline towards the $2.80 support level.
What Traders Are Watching
- Bulls aim for $3.70 if momentum continues and volumes stabilize.
- Bears cite $2.80 as the critical breakdown point that could amplify losses.
- Institutional buying remains pivotal — the continuation of large players supporting bids around $2.89–$2.90 will influence the next market movement.
