XRP Price Retreats to $2.97 After Testing $3.10 Resistance Following Fed Chair Powell’s Dovish Stance

Quick Take

• XRP currently trading at $2.97 (-1.56% in 24h)
• XRP RSI at 47.91 signals neutral momentum after recent rally
• Federal Reserve Chair Powell’s dovish Jackson Hole comments triggered 9% surge before pullback

What’s Driving Ripple Price Today?

The XRP price experienced significant volatility over the past week, primarily driven by Federal Reserve Chair Jerome Powell’s dovish commentary at Jackson Hole on August 22-23. Powell’s remarks reinforced expectations of a September rate cut, which lifted risk sentiment across digital assets and pushed XRP up 9% to test multi-month resistance near $3.10.

However, the rally proved short-lived as XRP price faced rejection at these crucial resistance levels, leading to the current pullback to $2.97. This price action demonstrates the ongoing struggle between bullish momentum generated by favorable macro conditions and technical resistance that has capped Ripple’s advance.

Adding to the positive sentiment, Ripple announced a strategic collaboration with Japanese financial giant SBI Holdings on August 23. This partnership will see SBI VC Trade distribute Ripple’s RLUSD stablecoin, expanding stablecoin options in the Japanese market. Additionally, Ripple became a founding member of TRM Labs’ Beacon Network, the first real-time crypto crime response network, showcasing its commitment to security and compliance.

Despite these positive developments, the immediate price impact has been overshadowed by technical resistance and profit-taking following the Fed-driven rally.

XRP Technical Analysis: Mixed Signals Emerge

XRP’s technical picture presents conflicting signals as the token consolidates after its recent surge. The XRP RSI currently sits at 47.91, indicating neutral momentum and suggesting neither oversold nor overbought conditions. This neutral reading provides room for movement in either direction, making the next few trading sessions critical for determining short-term direction.

Ripple technical analysis reveals bearish momentum through the MACD indicator, which shows a reading of -0.0234 with the histogram at -0.0141. This bearish MACD divergence suggests weakening upward momentum despite the recent price strength, potentially signaling further consolidation or pullback.

The moving average structure tells a more complex story for XRP price action. While the token trades below the 7-day SMA at $2.99 and the 20-day SMA at $3.06, it maintains a strong position above the critical 200-day SMA at $2.48. This configuration suggests short-term weakness within a longer-term bullish trend.

XRP’s position within the Bollinger Bands shows the token trading in the lower half of the band, with a %B reading of 0.3316. This positioning indicates potential support from the middle band at $3.06, while the upper band at $3.30 represents the next major resistance target.

Ripple Price Levels: Key Support and Resistance

Based on Binance spot market data, XRP faces immediate resistance at $3.35, which aligns closely with the recent rejection zone around $3.10. A break above this level would target the stronger resistance at $3.66, representing XRP’s next significant price objective.

Ripple support levels are well-defined, with immediate support at $2.78 providing the first line of defense for bulls. This level coincides with recent swing lows and represents a critical zone for maintaining the current consolidation pattern. Should this support fail, XRP price could decline toward the stronger support at $2.39, which would represent a more significant retracement.

The XRP/USDT pair’s pivot point at $2.99 serves as a key reference level, with the current price action hovering around this critical zone. A sustained break below would shift focus to downside targets, while reclaiming levels above $3.06 would renew bullish momentum.

Trading volume on Binance spot markets reached $424.5 million in the past 24 hours, indicating healthy liquidity despite the recent pullback. The daily ATR of $0.17 suggests moderate volatility, providing opportunities for both swing and day traders.

Should You Buy XRP Now? Risk-Reward Analysis

For conservative traders, the current XRP price action suggests waiting for a clearer directional break. The neutral RSI and mixed technical signals indicate potential for continued consolidation, making entry timing crucial. A break above $3.06 with volume confirmation would provide a more favorable risk-reward setup targeting $3.35.

Aggressive traders might consider the current levels attractive, given XRP’s position above key long-term support and the positive fundamental developments. However, risk management remains critical, with stops below $2.78 essential to limit downside exposure.

Swing traders should monitor the XRP/USDT pair’s behavior around the $2.99 pivot level. A bounce from current levels with improving momentum indicators could signal a continuation of the broader uptrend toward the 52-week high of $3.55.

The recent partnerships with SBI Holdings and participation in the Beacon Network provide fundamental support for XRP price over the medium term. However, short-term price action will likely remain influenced by broader market sentiment and Federal Reserve policy expectations.

Conclusion

XRP price currently sits at a critical juncture following its rejection near $3.10 resistance. While recent partnerships and dovish Fed commentary provide positive catalysts, technical indicators suggest caution in the near term. Traders should watch for a decisive break of the $2.99-$3.06 range to determine the next directional move, with clear risk management strategies essential given the mixed technical signals. The next 24-48 hours will likely prove pivotal for XRP’s short-term trajectory as the market digests recent developments and positions for potential Federal Reserve policy changes.

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