Key Takeaways
September is likely to be a volatile month for Bitcoin and Ethereum, and hasn’t been XRP bulls’ friend often either. The price action in August was bearish, and the $2.74 support was under threat.
Ripple [XRP] was in danger of closing a daily trading session below the swing low at $2.74. This would mean that the market structure on the 1-day timeframe has made a bearish shift.
It would be an early signal that the next price trend would be bearish for XRP.
Source: Coinalyze
Data from Coinalyze showed that the sentiment was muted in the speculative market. The Funding Rate was positive, but the Open Interest slid lower alongside the prices over the weekend.
This was a sign of bearish short-term sentiment.
Despite the bearish short-term outlook, the altcoin was consolidating at long-term highs. Will XRP fall below $2.74 this week and continue trending lower, or will it defy expectations and climb to $5 next?
Can XRP break the September pattern?
Source: Barchart
Only twice since 2017 has XRP made substantial gains of more than 15% in September. By comparison, January, February, and July were more dependable months.
With Bitcoin [BTC] also expected to drop toward $100k this month, XRP bulls might have a tough task to initiate a recovery.
Source: XRP/USDT on TradingView
The 1-day price chart highlighted the difficulties ahead of XRP bulls clearly. Over the past month, the trading volume has slowly dwindled.
The OBV has also been in a downtrend, showing selling pressure has been prevalent in recent weeks.
The RSI was unable to stay above neutral 50, and the swing market structure was at risk of a bearish break. As noted earlier, the $2.74 swing low from early August was an important support level.
It is possible that XRP would dip below the lows to collect liquidity before rebounding higher. However, for this scenario to play out, the buying pressure has to spike higher in the coming days and weeks.
A bullish performance from Bitcoin could also help the sentiment around XRP. However, based on the evidence at hand, a move toward $2.4 appeared more likely than a rally toward $5 in September.
Q4 2025 might see the token make its next leg higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
