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- XRP faces a descending triangle pattern near $2.74 support.
- Exchange reserves surged to yearly highs, signaling heavy selling.
- Recovery above $3 looks unlikely without renewed demand.
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XRP holders may need to brace for more pain ahead, as multiple technical and on-chain indicators point toward increasing selling pressure. Despite broader market stability, XRP appears vulnerable to a bearish breakdown.
Bearish Chart Patterns Intensify Risks
On the daily chart, XRP has been consolidating within a descending triangle formation, hovering above the key $2.74 support level. Historically, this pattern often precedes a continuation of the downtrend. A breakdown below this level could accelerate losses, especially since Bitcoin and Ethereum remain relatively stable around their respective support zones.
Bitcoin defended the $107k liquidity pocket, while Ethereum held its $4.3k demand zone. This suggests that XRP’s weakness is largely token-specific rather than driven by overall market sentiment.
On-Chain Metrics Highlight Selling Pressure
The Network Value to Transactions (NVT) ratio spiked sharply, indicating XRP may be overvalued relative to its current network activity. Supporting this bearish outlook, Santiment data revealed a sudden surge in dormant circulation among medium-term holders on September 1, coinciding with XRP’s drop to $2.6975.
Such movement often reflects tokens leaving holder wallets for exchanges, typically ahead of a sell-off. This was further confirmed by a significant rise in XRP exchange reserves, which reached their highest levels in over a year.
Can XRP Recover in the Short Term?
Other indicators offered little relief. The mean coin age, which had been climbing in August, dropped rapidly—another bearish sign. Meanwhile, the 90-day Market Value to Realized Value (MVRV) ratio showed holders at a minor loss, though not as steep as in previous corrections.
For XRP to regain bullish momentum, mean coin age would need to recover, and selling pressure would have to ease. Until then, analysts suggest the altcoin could struggle to reclaim the $3 level in September.
With bearish technical patterns, rising exchange reserves, and declining holder confidence, XRP faces a challenging month ahead. Unless demand increases significantly, traders should prepare for further downside before any meaningful recovery can occur.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: XRP Ledger Reveals Massive $229M in Payments – Is Litecoin Really More Useful?
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
