XRP Price Slides 4% Amid Bitcoin Sell-Off, But Bullish Cup-and-Handle Setup Remains Intact
August 29, 2025 – By Shaurya Malwa, CD Analytics
XRP experienced a notable 4.3% price decline within a 24-hour period between August 28 and 29, falling from a recent resistance near $3.02 to a low around $2.89. This downward movement occurred amid a broader sell-off in Bitcoin and the wider cryptocurrency market but did not diminish XRP’s longer-term technical bullish potential, as a cup-and-handle pattern pointing toward a $5 target remains visible.
Market Context and Recent XRP Price Action
The XRP token faced selling pressure following a volatile session on August 28–29, initially retreating from the $3.02 resistance mark and sliding sharply to about $2.84 early on August 28 at 15:00 GMT. Despite this dip, accumulation interest emerged between $2.85 and $2.86, supported by trading volumes exceeding the recent 75.9 million daily average during a recovery period from 07:00–09:00 GMT.
Later in the session, XRP staged a modest rebound, climbing from $2.87 to $2.89 in the final hour, briefly reaching $2.91 following a surge of nearly 20 million tokens traded. This suggested renewed institutional buying activity at these levels.
Technical Analysis: Support, Resistance, and Momentum
- Support Levels: A robust base has formed around $2.85–$2.86, with intraday stability near $2.88, indicating buyer accumulation.
- Resistance Levels: Selling pressure capped rallies near $3.02, with a near-term ceiling at $2.91 before potential higher moves.
- Momentum Indicators: The Relative Strength Index (RSI) steadied in the mid-50s after dipping to 42, signaling neutral to improving momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is approaching a bullish crossover, implying potential for upward follow-through.
The prevailing price action, although bearish in the short term, fits within a classic cup-and-handle technical pattern. Should momentum build, technical targets could range between $5 and $13, providing compelling upside potential if the market environment turns favorable.
Fundamental Drivers: Regulatory Environment and Network Growth
XRP continues wrestling with regulatory uncertainty as market participants eagerly await the U.S. Securities and Exchange Commission’s (SEC) decisions on spot cryptocurrency exchange-traded funds (ETFs) scheduled for September. This looming regulatory clarity is expected to influence trading behavior and investor confidence.
Supporting this positive outlook, active XRP Ledger addresses surged by 20% over three days, signaling revitalized network engagement ahead of the planned September 12 launch of Decentralized Media — a project expected to leverage the XRP Ledger’s infrastructure.
Furthermore, Chinese fintech giant Linklogis recently integrated its trillion-dollar supply-chain finance platform with the XRP Ledger. This announcement propelled Linklogis’ equity up by 23%, highlighting growing institutional interest and adoption of XRP-related technologies in mainstream financial sectors.
Whale Activity and Market Sentiment
Market watchers note continued large-scale repositioning among major holders. For instance, approximately 900 million DOGE tokens, valued at around $200 million, moved to Binance earlier this week. Such whale activity underscores ongoing redistribution within the memecoin segment and may impact overall market liquidity and sentiment.
What Traders Are Watching
Key levels to watch include XRP’s ability to defend the support zone around $2.85–$2.88, which could form a solid foundation for further recovery. A successful breakout above resistance at $3.02 may open the path toward short-term targets near $3.20. Conversely, failure to hold support could see XRP testing $2.80. Additionally, market participants will monitor whether increasing institutional accumulation and network growth—illustrated by the XRP Ledger address jump and Linklogis partnership—can offset distribution pressure from whales and retail sellers in the sessions ahead.
Summary
XRP’s near-term price trajectory reflects a balance between regulatory uncertainties and strong underlying technical and fundamental catalysts. While recent volatility saw a 4% slide amid Bitcoin’s broader sell-off, the existence of a cup-and-handle pattern combined with growing institutional endorsements and network adoption provides guarded optimism for a rally toward $5 and beyond in the coming weeks.
For continuous updates on XRP and other digital assets, stay tuned to CoinDesk’s market coverage.