It seems that altcoins will experience a turbulent start to September.
The cryptocurrency market has undergone a significant upward trend over the last day, with many established coins surpassing key resistance threshold. Notably, $XRP is nearing the $1.15 mark, a level that has seen two rejections since July. This price point remains a major resistance zone for the altcoin. Consequently, the pressing question is whether $XRP will face a third rejection at this critical price point.
From a technical perspective, the situation appears to support the possibility of another rejection, as the daily Relative Strength Index (RSI) is above 70, indicating an overbought condition. Furthermore, the 4-hour RSI is even reaching the overbought threshold of 80, suggesting an extreme overbought status. Therefore, $XRP could be vulnerable to a downward reversal shortly after testing the $1.15 resistance for the third time.
Adding further weight to this argument is a key driver behind the recent price surge.
Ripple CEO Brad Garlinghouse recently met with U.S. President Donald Trump and several industry leaders. Following the emergence of this news on social media, the price of $XRP surged nearly 15%, marking its first notable parabolic increase in several months. However, the positive momentum was not exclusive to $XRP.
In fact, other major cryptocurrencies also breached significant resistance levels, benefitting from double-digit increases. Consequently, the phenomenon of “FOMO” (Fear of Missing Out) might play a crucial role in helping $XRP avoid another bearish phase. If the momentum surrounding Ripple [$XRP] continues to grow, will it manage to surpass resistance and break free from the previous two failed attempts?
$XRP faces a pivotal resistance challenge
At present, we are observing a DeFi-influenced price trend for $XRP.
According to DeFiLlama, the total value locked (TVL) in the $XRP Ledger rose by over 11% in the past 24 hours. Simultaneously, stablecoin supply has seen a weekly increase of more than 10%. This suggests a strong correlation between TVL growth and overall capital deployment on the blockchain network with $XRP’s price action.
Additionally, examining the chart reveals that $XRP ETFs have already attracted over $8 million in inflows this week, with less than 48 hours remaining. This marks the highest weekly inflow recorded in August thus far.
In this context, the increased interest in DeFi is likely to create further positive momentum for $XRP’s ETF inflows. This indicates that FOMO is on the horizon and may emerge soon.
In light of this, Ripple CEO Brad Garlinghouse’s involvement in the conference is anticipated to enhance price dynamics rather than being the sole driver of the uptrend. It is expected that $XRP will continue to climb, potentially targeting the $1.20 ceiling in the near future.
Achieving this would enable it to surpass the previous two rejections and could draw in additional FOMO investments for $XRP.
Summary of Key Points
- $XRP is approaching the $1.15 resistance, but signs of being overbought could lead to a pullback.
- Strong DeFi activities and ETF inflows may assist $XRP in breaking the $1.15 barrier and reaching for $1.20.