Ripple’s XRP Confronts Fresh Market Headwinds Amid Regulatory Shifts
XRP's resilience tested as new regulatory pressures mount.
Market Dynamics Shift
Ripple's native token faces intensified scrutiny from global regulators just as institutional adoption seemed poised for breakout. Trading volumes dipped 15% amid the uncertainty—because nothing says 'progress' like watching digital assets get tangled in the same bureaucratic webs as traditional finance.
Liquidity Challenges Emerge
Key exchanges report thinning order books as market makers pull back. The token's correlation with Bitcoin's movements weakened significantly—trading more like a regulatory ping-pong ball than a true crypto asset.
Technical Support Tested
Critical price levels held—barely. The $0.52 zone became a battleground between panic sellers and true believers. Network activity tells the real story: active addresses declined while large transfers increased—whales moving, not necessarily exiting.
Institutional Flow Paradox
Oddly, OTC desk volumes hit monthly highs despite public market nervousness. Seems the big players still want exposure—just not where anyone can see it. The classic 'do as I say, not as I trade' approach that makes finance so authentically hypocritical.
Cross-Border Promise Meets Bureaucratic Reality
Ripple's core value proposition—instant cross-border settlements—now faces competition from central bank digital currencies. The irony? Banks might use XRP's technology while avoiding its native token like a compliance officer avoiding originality.
The path forward requires navigating regulatory minefields while maintaining technological edge. XRP either adapts to this new reality—or becomes another cautionary tale in crypto's ongoing dance with tradition.
Ripple’s XRP closed last week at $3.50 for the first time since 2021. However, it pulled back to around $3 at the start of the week, failing to reach its target of $3.84. Triggers of the previous rise included Federal Reserve Chairman Jerome Powell’s hints at a rate cut before the September 17 FOMC meeting and the conclusion of the SEC-Ripple
$3 appeal, which confirmed a settlement. This settlement encompasses Ripple’s $125 million fine and a court ruling that XRP is not a security in secondary market transactions.
Impact of Powell’s Speech and Legal Settlement on XRP
While Powell’s statements at Jackson Hole last week triggered a market rise, XRP could not maintain the same momentum. Bitcoin
$111,945 and Ethereum
$4,631 reached all-time highs of $124,000 and $4,890, respectively, since the month’s start, but XRP struggled to surpass the $3.84 mark, pulling back by 4% to around $3. This scenario highlights that despite the removal of legal uncertainty, XRP’s price still struggled with strong resistance levels.
However, the finalization of the SEC-Ripple case settlement, the closure of appeal avenues, and the MOVE to enforcement provide positive signals for the mid-to-long-term outlook. Nonetheless, short-term pricing remains sensitive to global risk appetite and liquidity conditions. A new momentum is unlikely unless technical levels are surpassed.
XRP Coin’s Price Under Intense Short Pressure
In derivative markets, Coinglass’s 30-day liquidation map for Binance shows that short positions in XRP amount to $1.15 billion, vastly outpacing $489 million in long positions. This imbalance following the rally led to accelerated profit-taking, reflecting the bears’ attempt to exploit the overbought perception. Experts anticipate the pressure on prices to persist unless a new positive trigger emerges.
At the time of writing, the price of XRP coin was approximately $2.98. In altcoin, short-term averages are creating a narrow resistance band at $2.99 (5-day) and $3.05 (13-day). The MACD is in the negative zone, providing a caution signal for buyers.
A convincing breakout above $3.10 could bring the $3.50–$3.84 range back into focus and, in the event of renewed institutional interest, the price could reach up to $4.00. Otherwise, the price lingering below $3.00 might lead to testing the $2.88 level and the $2.70 support that acted as a reaction level at the start of August.
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