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XRP Price Starts September Weak, But Metrics Signal 8% Rebound Ahead

2 mins
Updated by Ann Maria Shibu
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In Brief

  • Whale flows continue to be near month-on-month lows, easing selling pressure on XRP price.
  • The taker buy/sell ratio improved after a local low, pointing toward bullish sentiment.
  • If support near $2.70 holds, XRP could rise 8% to test resistance at $2.96.
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The XRP price hasn’t had the brightest start to September. The token slipped over 3% in the last 24 hours and was trading near $2.73 at press time. This latest dip adds to its 7-day losses to 8.6%.

The early weakness has left traders cautious, but a closer look at on-chain and derivatives data shows reasons to believe a rebound could be on the way.

Whale Flows Cool as Derivatives Sentiment Improves

Whale-to-exchange flows dropped to 1,025 XRP on August 31, one of the lowest levels in a month. By September 1, flows had recovered slightly to 1,768 XRP, keeping pressure near the lows.

This suggests that large holders are still sending less XRP to exchanges (since August 26), easing the selling pressure.

XRP Whales Not As Aggressive
XRP Whales Not As Aggressive: CryptoQuant

Some might read this as whales losing interest, but derivatives data gives a more nuanced view. The taker buy/sell ratio, which measures aggressive buying against selling in futures, has a history of marking local bottoms.

XRP Derivatives Showing Growing Bullishness
XRP Derivatives Showing Growing Bullishness: CryptoQuant
  • On August 2, the ratio hit 0.88, and XRP rallied from $2.76 to $3.07, a gain of 11%.
  • On August 5, the ratio dropped to 0.90, followed by a 12% rally.
  • On August 19, another low at 0.90 preceded a close to 8% rally.

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The latest low was 0.90 on August 29. The XRP price has not yet rallied, but the ratio has since climbed to 0.96, indicating that sentiment is turning more positive.

This rising bullishness, along with fewer whale selling instances, further supports the XRP price recovery narrative.

Bullish Divergence and Key XRP Price Levels to Watch

The second bullish sign comes from the Money Flow Index (MFI). This indicator tracks both price and trading volumes to show whether money is flowing in or out of an asset.

While XRP’s price fell through late August, the MFI rose steadily from 31.24 on August 22 to 47.49 on September 1. This bullish divergence between price and MFI often signals that traders are buying the dip.

XRP Price Analysis
XRP Price Analysis: TradingView

The XRP price chart also backs up this view. $2.70 remains a critical support level. A daily close below it could open the way for a slide toward $2.43, invalidating the rebound hypothesis.

But as long as XRP holds above support, bulls have a chance to turn momentum. If sentiment from derivatives and inflows continues to firm up, the next resistance to test will be $2.96. This move would mark about an 8% rebound from current levels, the minimum XRP price rise seen over the past month after the Taker Buy/Sell Ratio hit a local bottom.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Ananda Banerjee
Ananda Banerjee is a technical copy/content writer specializing in web3, crypto, Blockchain, AI, and SaaS — in a career spanning over 12 years. After completing his M.Tech in Telecommunication engineering from RCCIIT, India, Ananda was quick to pair his technical acumen with content creation in a career that saw him contributing to Towardsdatascience, Hackernoon, Dzone, Elephant Journal, Business2Community, and more. At BIC, Ananda currently contributes long-form content discussing trading...
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