XRP declined 4% from $2.85 to $2.75 in the 24-hour period ending September 1, as the cryptocurrency faced headwinds from institutional liquidations totaling $1.9 billion since July. The drop occurred despite significant accumulation by large holders, who purchased 340 million XRP tokens over the past two weeks, creating conflicting market signals as traders enter historically weak September conditions.
What to Know:
- XRP fell 4% to $2.75 in 24 hours while facing $1.9 billion in institutional liquidations since July
- Large cryptocurrency holders accumulated 340 million XRP tokens during the past two weeks despite the selling pressure
- September historically represents the weakest month for cryptocurrency performance, adding to current market concerns
Market Dynamics Show Institutional Division
The cryptocurrency moved across a $0.12 range during Sunday's session, with the steepest decline occurring at 23:00 GMT on August 31. Trading volume spiked to 76.87 million tokens during that hour, nearly triple the daily average of 27.3 million. Price action showed XRP dropping from $2.80 to $2.77 as selling pressure intensified.
Support levels were tested again during the final trading hour, from 01:31 to 02:30 GMT on September 1. The token fell from $2.77 to $2.75 during this period. Trading data showed spikes of more than 10 million tokens per minute, confirming forced liquidations were occurring across multiple exchanges.
Earlier in the day, XRP briefly reached $2.87 before retreating. Institutional selling capped rallies above the $2.80 level throughout the session.
Technical Patterns Suggest Conflicting Outcomes
Current support rests between $2.75 and $2.77, representing the immediate base for price action. Below this level, technical analysts identify $2.50 and $2.00 as critical longer-term support zones. Resistance remains heavy between $2.80 and $2.87, with $3.30 representing the higher-term breakout line.
Momentum indicators show the Relative Strength Index dipped into the mid-40s before stabilizing.
This suggests oversold conditions may be developing. The Moving Average Convergence Divergence indicator shows bearish divergence persisting, though histogram compression points to a potential crossover if accumulation continues.
Chart patterns include symmetrical triangle and double-bottom formations. These align with a longer-term cup-and-handle structure that some analysts believe could drive prices toward $5 to $13 if resistance breaks.
Understanding Cryptocurrency Market Terms
Several technical concepts shape current XRP trading. Liquidity maps show token concentrations up to $4.00 that could amplify upward price movements. The XRP Ledger, the blockchain network supporting the token, shows activity trending higher according to on-chain data.
Symmetrical triangles represent chart patterns where price moves between converging trend lines, often preceding significant price moves. Cup-and-handle formations are longer-term bullish patterns that technical analysts use to identify potential breakout scenarios.
Whale accumulation refers to purchases by large holders, typically those controlling significant amounts of cryptocurrency. These investors often move markets through their trading decisions.
Seasonal and Regulatory Factors Create Additional Pressure
September historically represents the weakest month for cryptocurrency performance. This seasonal pattern adds caution to current trading conditions. Ongoing regulatory pressure in the United States compounds these concerns, as unresolved Securities and Exchange Commission actions keep institutional investors wary of increased exposure.
Market participants are watching whether $2.75 can hold as a new floor heading into early September trading. A close above $2.87 would shift sentiment toward a potential run at $3.30.
The divergence between institutional selling totaling $1.9 billion since July and whale accumulation of 340 million tokens in August represents a key market driver. This split suggests uncertainty among different categories of investors about XRP's near-term direction.
Closing Thoughts
XRP faces a critical juncture as September trading begins, with technical support at $2.75 being tested amid conflicting signals from large institutional sellers and accumulating whales. The outcome of this battle between selling pressure and accumulation will likely determine whether the cryptocurrency can break above resistance levels or faces further declines during the historically challenging September period.