XRP Drops 4% After $2.88 Rejection as ETF Speculation Builds

XRP pulled back sharply after failing to sustain momentum above the $2.88–$2.89 resistance zone, even as ETF speculation continues to build ahead of October SEC deadlines. The selloff highlights a pivotal inflection point as institutional flows battle against long-term consolidation patterns that many analysts believe could precede a larger move. News Background • XRP fell 4% from $2.88 to $2.84 on September 5 after hitting an intraday high of $2.89, as institutional selling pressure emerged. • Trading volume exploded to 227.75 million during the 12:00 hour, nearly 4x the 24-hour average of 58.40 million. • Six asset managers, including Grayscale and Bitwise, have filed for spot XRP ETFs, with SEC decisions expected in October. • Ripple’s legal settlement with the SEC has improved regulatory clarity, boosting industry estimates to an 87% probability of ETF approval. • Technical strategists are comparing the current 47-day consolidation range to XRP’s 2017 structure, which preceded a parabolic rally. Price Action Summary • XRP traded in a $0.10 range (3.47%) between $2.78 and $2.89 during the 24-hour session from Sept. 4 15:00 to Sept. 5 14:00. • The asset advanced from $2.84 to $2.89 on massive volume at 12:00 and 13:00 before rejecting resistance. • A concentrated 60-minute move from 13:26 to 14:25 saw a 4% slide from $2.88 to $2.84 on 10.6M volume, breaching intraday supports at $2.86 and $2.85. • XRP closed the session at $2.84, just above primary support levels near $2.77. Technical Analysis • Resistance: $2.88–$2.89 zone validated after multiple failed breakouts. • Support: Immediate levels at $2.84–$2.85, with stronger backing at $2.77. • Pattern: 47-day consolidation suggests potential breakout setup; $4.63–$13 targets flagged if structure resolves higher. • Momentum: RSI in mid-50s, showing neutral bias; MACD histogram converging toward bullish crossover. • Volume: 227.75M at peak vs 58.40M average confirms institutional distribution. What Traders Are Watching • Whether $2.77 holds as decisive support into September. • SEC’s October spot XRP ETF rulings — seen as a potential bullish trigger. • Continuation of whale accumulation (340M tokens recently added) despite short-term distribution pressure. • Signs of breakout above $3.30, which analysts argue could open pathways toward $4+.