XRP News Today: Will XRP's Big Move Signal a Break or a Bounce at $2.85?

A large movement of 35,122,576 XRP tokens linked to Coinbase has sparked significant reactions in the cryptocurrency market, raising questions about whether the price of XRP will reverse or face a more substantial decline. XRP, the third-largest cryptocurrency by market capitalization, has experienced a dramatic surge over the past year, climbing by nearly 400% in the trailing 12-month period as of August 29 [1]. This performance far outpaces Bitcoin’s 84% gain during the same timeframe, positioning XRP as one of the most volatile and dynamic assets in the digital currency space.

The recent activity involving the Coinbase-linked XRP movement has intensified discussions among investors and analysts about the token’s near-term trajectory. While some see the move as a potential sign of accumulation or dumping, others view it as a short-term fluctuation amid a broader bullish trend. The movement coincides with heightened speculation regarding the approval of a spot XRP exchange-traded fund (ETF), a development that could bring institutional capital into the XRP market and increase its exposure to traditional investors [1].

XRP’s performance has also been influenced by broader macroeconomic and political trends. The election of Donald Trump as U.S. president in early 2025 was seen as a positive development for the crypto industry, particularly with the passage of the Genius Act, which introduced clearer regulations for stablecoins. While this legislation does not directly impact XRP, it signals a more crypto-friendly regulatory environment, which could indirectly benefit XRP by fostering broader market confidence [1]. Additionally, the ongoing resolution of the Ripple-SEC lawsuit has contributed to a more favorable outlook for XRP, though uncertainty remains.

From a technical standpoint, XRP is currently trading near a critical support level, with its price hovering around $2.85. This level has acted as a floor in recent weeks, preventing a deeper correction despite increasing volatility. The price pattern resembles a falling triangle, a common technical formation that suggests indecision in the market. A break above $2.92 could signal a bullish continuation, while a breakdown below $2.85 may trigger further selling pressure [2].

The price movements of XRP are heavily influenced by market sentiment, particularly the behavior of large holders, or “whales,” who can significantly impact short-term price swings. Recent large sell-offs have led to sharp declines, raising concerns about the asset’s stability for institutional and small investors alike. For European SMEs that have begun incorporating XRP into their financial operations, the volatility poses a challenge, particularly in payroll and cross-border payment systems where price stability is crucial [2]. The integration of XRP into such systems is further complicated by the regulatory uncertainty surrounding the Ripple-SEC litigation.

Looking ahead, the potential approval of an XRP ETF could provide a much-needed structural boost to the token. ETFs allow traditional investors to gain exposure to digital assets without the need to store and manage them directly, reducing entry barriers and increasing liquidity. While the exact timing of such a product remains uncertain, the mere possibility has already driven bullish sentiment among investors. Analysts are closely monitoring the regulatory landscape and market reactions to determine whether this could be a catalyst for long-term appreciation [3].

Despite these potential positives, XRP remains highly volatile and subject to sudden price shifts. In the short term, market participants are advised to remain cautious, as a breakdown in key support levels could lead to a sharper correction. In the longer term, XRP’s adoption by financial institutions and its role in cross-border payments could enhance its utility and value proposition. However, the asset’s future will ultimately depend on regulatory clarity, institutional demand, and broader market sentiment.

Source:

[1] Investors Bought the XRP Hype -- Is It Now Time to Sell the ... (https://finance.yahoo.com/news/investors-bought-xrp-hype-now-070600680.html)

[2] Is XRP's Support Level About to Crumble? (https://www.onesafe.io/blog/xrp-support-levels-risks-smes-payroll-integration)

[3] XRP Price Prediction: Is XRPUSD Expected to Skyrocket? (https://www.markets.com/education-centre/xrp-price-prediction-is-xrpusd-expected-to-skyrocket-1/)