XRP Price Prediction: After an 8% decline in August, rebound signals emerge as whales accumulate $962 million, boosting bullish expectations for September.
Against the backdrop of a 14% rise in the overall crypto market in August, XRP fell 8% against the trend, but multiple bullish signals are emerging on the technical front. The daily chart has formed a classic falling wedge pattern, a historically similar structure that has triggered multi-month rebound trends; the price is firmly holding the critical support of the 200-day exponential moving average at $2.50, while the weekly cup and handle pattern is brewing a breakout momentum. On-chain data shows that whales accumulated 340 million XRP (worth $962 million) during the decline, with a net outflow of $268 million from exchanges, and derivatives open interest reaching $8.02 billion with a positive funding rate, indicating a buildup of bullish sentiment. Historical data indicates that after experiencing an 8% decline in August, XRP's average rebound in September exceeds 30%.
The technical aspect shows a falling wedge and cup-and-handle pattern, with key support levels becoming a battleground for bulls and bears.
(Source: TradingView)
The XRP daily chart shows that after reaching a high of $3.66 on July 3, it has gradually formed a falling wedge structure, which often signals a bullish reversal. A successful breakout above the wedge resistance may push XRP to test the target level of $3.25 in September, representing a 15% rise from the current price. Meanwhile, the price has consistently held the 200-day exponential moving average support at $2.50, which has historically provided long-term support multiple times. Higher time frames also show the embryonic form of a cup and handle pattern; if confirmed, a breakout could initiate a mid-term rally towards the $5.00 target. Analysts point out that losing the $2.50 support would invalidate bullish expectations and open up deeper retracement space.
Historical data reveals September rebound pattern, with an average rise of over 30%
Historical market data shows that XRP often experiences a strong rebound in September after a fall in August: in August 2017, it fell by 23.5% and then rose by 28.2% in September; in August 2021, it fell by 34.2% and then rose by 33.4% in September, with an average rebound rate of over 30%. Market analysts believe this seasonal performance is driven by bottom-fishing funds and capital rotation, with traders usually viewing the oversold conditions in August as an opportunity to position themselves ahead of the traditional rise in the fourth quarter. If historical patterns repeat, the current weakness may create conditions for a recovery in September.
Whale institutions are massively increasing their holdings at low prices, with $268 million flowing out of exchanges
On-chain data reveals that institutional investors have been continuously accumulating chips during the price decline. According to Santiment data, whale addresses accumulated 340 million XRP (worth approximately $962 million) over the past two weeks of decline, with an average cost of about $2.83. During the same period, CoinGlass data showed that $268 million worth of XRP was withdrawn from exchanges, indicating that spot investors are also participating in the accumulation. This large-scale accumulation typically provides upward support for assets and boosts potential rebound trends. If the overall liquidity in the crypto market improves, XRP is expected to gain upward momentum from this.
The derivatives market releases bullish signals, with open interest surpassing $8 billion
The derivatives market data resonates with the accumulation in the spot market. The funding rate for XRP turned positive on August 31 (0.0075%), indicating a continuous inflow of long positions, with traders willing to pay the funding fee to maintain bullish positions. The total open contracts increased to $8.02 billion within 24 hours; although this data itself does not directly indicate direction, combined with a positive funding rate, it suggests that bulls control most of the new inflow of funds. The market structure shows XRP forming a descending triangle consolidation near the support level of $2.80, a consolidation pattern that usually implies the accumulation of positions before volatility expansion.
Conclusion
XRP is gathering multiple bullish factors in terms of both technical and fundamental analysis after a weak performance in August. The falling wedge breakout pattern and the historical rebound pattern in September create a technical resonance, while the large-scale accumulation by Whales and outflows from exchanges indicate institutional confidence. The bullish sentiment in the derivatives market provides additional momentum. Investors need to closely monitor the effectiveness of the support at the 200-day MA of $2.50. A breakout above the wedge resistance level of $3.25 could potentially open up an upward trend towards the $4-5 target. However, if the key support is lost, it may trigger a deeper adjustment to the $2.20-2.30 range. The overall liquidity situation in the crypto market and fundamental news from Ripple will also significantly impact price movements.
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XRP Price Prediction: After an 8% decline in August, rebound signals emerge as whales accumulate $962 million, boosting bullish expectations for September.
Against the backdrop of a 14% rise in the overall crypto market in August, XRP fell 8% against the trend, but multiple bullish signals are emerging on the technical front. The daily chart has formed a classic falling wedge pattern, a historically similar structure that has triggered multi-month rebound trends; the price is firmly holding the critical support of the 200-day exponential moving average at $2.50, while the weekly cup and handle pattern is brewing a breakout momentum. On-chain data shows that whales accumulated 340 million XRP (worth $962 million) during the decline, with a net outflow of $268 million from exchanges, and derivatives open interest reaching $8.02 billion with a positive funding rate, indicating a buildup of bullish sentiment. Historical data indicates that after experiencing an 8% decline in August, XRP's average rebound in September exceeds 30%.
The technical aspect shows a falling wedge and cup-and-handle pattern, with key support levels becoming a battleground for bulls and bears.
(Source: TradingView)
The XRP daily chart shows that after reaching a high of $3.66 on July 3, it has gradually formed a falling wedge structure, which often signals a bullish reversal. A successful breakout above the wedge resistance may push XRP to test the target level of $3.25 in September, representing a 15% rise from the current price. Meanwhile, the price has consistently held the 200-day exponential moving average support at $2.50, which has historically provided long-term support multiple times. Higher time frames also show the embryonic form of a cup and handle pattern; if confirmed, a breakout could initiate a mid-term rally towards the $5.00 target. Analysts point out that losing the $2.50 support would invalidate bullish expectations and open up deeper retracement space.
Historical data reveals September rebound pattern, with an average rise of over 30%
Historical market data shows that XRP often experiences a strong rebound in September after a fall in August: in August 2017, it fell by 23.5% and then rose by 28.2% in September; in August 2021, it fell by 34.2% and then rose by 33.4% in September, with an average rebound rate of over 30%. Market analysts believe this seasonal performance is driven by bottom-fishing funds and capital rotation, with traders usually viewing the oversold conditions in August as an opportunity to position themselves ahead of the traditional rise in the fourth quarter. If historical patterns repeat, the current weakness may create conditions for a recovery in September.
Whale institutions are massively increasing their holdings at low prices, with $268 million flowing out of exchanges
On-chain data reveals that institutional investors have been continuously accumulating chips during the price decline. According to Santiment data, whale addresses accumulated 340 million XRP (worth approximately $962 million) over the past two weeks of decline, with an average cost of about $2.83. During the same period, CoinGlass data showed that $268 million worth of XRP was withdrawn from exchanges, indicating that spot investors are also participating in the accumulation. This large-scale accumulation typically provides upward support for assets and boosts potential rebound trends. If the overall liquidity in the crypto market improves, XRP is expected to gain upward momentum from this.
The derivatives market releases bullish signals, with open interest surpassing $8 billion
The derivatives market data resonates with the accumulation in the spot market. The funding rate for XRP turned positive on August 31 (0.0075%), indicating a continuous inflow of long positions, with traders willing to pay the funding fee to maintain bullish positions. The total open contracts increased to $8.02 billion within 24 hours; although this data itself does not directly indicate direction, combined with a positive funding rate, it suggests that bulls control most of the new inflow of funds. The market structure shows XRP forming a descending triangle consolidation near the support level of $2.80, a consolidation pattern that usually implies the accumulation of positions before volatility expansion.
Conclusion
XRP is gathering multiple bullish factors in terms of both technical and fundamental analysis after a weak performance in August. The falling wedge breakout pattern and the historical rebound pattern in September create a technical resonance, while the large-scale accumulation by Whales and outflows from exchanges indicate institutional confidence. The bullish sentiment in the derivatives market provides additional momentum. Investors need to closely monitor the effectiveness of the support at the 200-day MA of $2.50. A breakout above the wedge resistance level of $3.25 could potentially open up an upward trend towards the $4-5 target. However, if the key support is lost, it may trigger a deeper adjustment to the $2.20-2.30 range. The overall liquidity situation in the crypto market and fundamental news from Ripple will also significantly impact price movements.