Is XRP’s Descent a Prelude to a Spectacular Rise?

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Ah, the month of September begins, and with it, the XRP price embarks on a somber journey, slipping over 3% in the last 24 hours, lingering near the $2.73 mark at the time of writing. This recent downturn adds to its 7-day losses, now standing at a disheartening 8.6%. One might say, the coin has found itself in a state of existential crisis, much like Raskolnikov before his fateful decision.

The early shadows of September have cast a wary eye upon the traders, who now tread cautiously, their steps measured and hesitant. Yet, a closer inspection of the on-chain and derivatives data reveals glimmers of hope, like faint stars piercing the night sky, hinting at a potential rebound.

Whale Flows Cool as Derivatives Sentiment Improves

The great whales, those mysterious titans of the crypto seas, have seen their flows to exchanges dwindle to a mere 1,025 XRP on August 31, one of the lowest levels in a month. By September 1, these flows had risen slightly to 1,768 XRP, maintaining a semblance of pressure near the lows. 🐳

This reduction in whale activity suggests that the large holders are not as eager to sell, thus easing the selling pressure. Some may interpret this as a sign of waning interest from the whales, but the derivatives data tells a different story. The taker buy/sell ratio, a measure of aggressive buying against selling in futures, has historically marked local bottoms, much like a lighthouse guiding ships through treacherous waters.

  • On August 2, the ratio hit 0.88, and XRP soared from $2.76 to $3.07, a gain of 11%.
  • On August 5, the ratio dipped to 0.90, followed by a 12% rally.
  • On August 19, another low at 0.90 heralded a nearly 8% rally.

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The latest low was 0.90 on August 29. Despite the lack of immediate rally, the ratio has since climbed to 0.96, suggesting a shift towards more positive sentiment. This growing optimism, coupled with reduced whale selling, bolsters the narrative of an impending XRP price recovery. 📈

Bullish Divergence and Key XRP Price Levels to Watch

The second harbinger of hope emerges from the Money Flow Index (MFI), an indicator that tracks both price and trading volumes, revealing whether funds are flowing into or out of an asset. While XRP’s price faltered through late August, the MFI steadily ascended from 31.24 on August 22 to 47.49 on September 1, a bullish divergence that often precedes a buying frenzy.

The XRP price chart corroborates this optimistic outlook. The $2.70 mark stands as a crucial support level. Should it falter, a descent towards $2.43 looms, potentially invalidating the rebound theory. However, as long as XRP clings to this support, the bulls have a fighting chance to reclaim the momentum. If the positive sentiment from derivatives and inflows continues to strengthen, the next resistance to challenge will be $2.96. Such a move would signify an 8% rebound from current levels, echoing the minimum XRP price rise observed in the past month after the Taker Buy/Sell Ratio touched a local bottom.

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2025-09-01 18:27