XRP finds itself at a pivotal point in the market, where technical patterns, macroeconomic forces, and investor sentiment are converging to shape its next big move.
XRP is trading at a pivotal level as price action converges inside a descending triangle. With pressure mounting near support, the market is preparing for a decisive move that could set the tone for the rest of September. Traders are watching closely as technicals, macroeconomic shifts, and ETF anticipation all combine to shape sentiment.
Technical Setup: A Make-or-Break Moment
On the daily chart, XRP has formed a descending triangle, with sellers gradually pushing lower highs while buyers defend the $2.80 support. A breakdown beneath this level would expose the next major support zone between $2.60 and $2.50, which aligns with the 200-day simple moving average.
If bears manage to drive the token even lower, a move toward $1.95–$2.00 cannot be fully dismissed, though this remains a less likely scenario under current conditions. On the upside, a decisive reclaim of $3 could trigger volatility, as that level has historically attracted heavy selling pressure. Bulls, however, argue that breaking above $3 could open the door to a run toward new all-time highs.
Macro Tailwinds: Weak Jobs Data and Fed Cuts
Macroeconomic data continues to play a central role in crypto’s outlook. The latest U.S. nonfarm payrolls report came in weaker than expected, reinforcing signs of labor market fatigue. Markets now anticipate a Federal Reserve rate cut at the September FOMC meeting, with growing speculation that the reduction could exceed the typical 25 basis points.
Rate cuts typically increase liquidity and ease borrowing conditions, fueling appetite for risk assets such as cryptocurrencies. Should the Fed take a more aggressive approach, it would likely amplify bullish momentum across the crypto sector, benefiting XRP in particular given its unique position in the ETF narrative.
ETF Hype Driving Institutional Interest
Optimism over an XRP ETF is another major catalyst. Approval odds for October are estimated at roughly 93%, and investors see such a decision as a potential game-changer. An ETF would open the doors for institutional capital inflows, boosting liquidity and potentially driving XRP toward uncharted price levels. Currently there are 15 applications waiting for the regulatory greenlight from the SEC.
Speculation around the ETF has already injected energy into the market, with traders increasingly positioning for a bullish breakout. For many, the October decision represents probably the most important month for XRP in all of history.
Bitcoin’s Struggle and Altcoin Potential
Bitcoin’s performance adds another layer to the analysis. The world’s largest cryptocurrency recently attempted to break the $113,500 resistance twice but failed both times, forming a structure that resembles a double top. This bearish pattern increases the likelihood of consolidation in BTC, while simultaneously creating conditions for altcoins to shine.
As Bitcoin cools off, market participants often rotate into alternative assets in search of stronger returns. This dynamic could provide XRP with an extra push, particularly if technicals align with positive ETF news.
Risks That Could Derail the Rally
Despite the bullish setup, investors must remain aware of risks that could trigger volatility. The Russia-Ukraine war continues to weigh on global markets, raising uncertainty around energy prices, supply chains, and overall investor sentiment.
At the same time, tariff disputes between major economies are adding pressure to the global outlook, making investors more cautious about exposure to risk assets. Escalating tensions between BRICS nations and the United States further complicate the picture, as geopolitical instability often leads to market pullbacks.
Outlook: Bullish, But Cautious
Taking all factors into account, sentiment around XRP leans bullish. The technical setup suggests a key breakout is near, while ETF anticipation and expectations of Fed rate cuts provide a supportive macro backdrop. If XRP manages to hold the $2.80–$2.60 support zone, the path toward new all-time highs could be within reach.
Still, geopolitical risks and global trade disputes remain wildcards that could test the resilience of investors. For now, XRP sits at the crossroads of technical pressure, macro opportunity, and institutional hype – making the coming weeks critical in determining whether it can extend its rally or face another correction.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.