XRP Backflips on Technical Rejection After 10% Price Surge
XRP has backflipped, down about 5% in hours to $1.39, underperforming the broader market dip and primarily driven by profit-taking following its recent strong rally.
The token dipped on a technical pullback from key resistance, retreating after breaking above a descending channel. XRP recently broke above a short-term descending channel, gaining about 10% to nearly $1.47.
The current drop represents a natural pullback to test newfound support, with increased selling volume confirming the move. This is a typical consolidation phase after a strong upward move, not a trend reversal.
Traders said price holding above the $1.36 swing low would maintain the bullish breakout structure. A sustained close above $1.50 was anticipated to open a path toward $1.70.
Investors’ sentiment was generally down despite a dovish signal from the US Federal Reserve, while the market anticipates Treasury bond buying to boost liquidity in Sept.
The total crypto market cap fell 1.54% in the same period, with Bitcoin down 1.7%. XRP’s larger decline shows it underperformed the market beta, indicating altoverfaced amplified selling pressure.
XRP’s sharp fall over a couple of hours was exacerbated by a risk-off shift across crypto, though no single macro driver was identified in the provided data.
The immediate catalyst is the U.S. Senate’s cloture vote on the CLARITY Act scheduled for September 15. If XRP holds above $1.36 support, it may range between $1.36 and $1.47.
A break below $1.36 invalidates the near-term bullish structure and could target the 200-day average near $1.27.
The outlook is cautiously neutral, hinging on both technical support and regulatory developments. The drop is a technical cooldown after a rally, set against a weaker macro backdrop for crypto. XRP Price Soars 6.5% on Dovish U.S. Fed Signal
